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Locus of Control and the Labor Market

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  • Deborah Cobb-Clark

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Institute for the Study of Labor (IZA); and ARC Centre of Excellence for Children and Families over the Life Course)

Abstract

This paper reviews the role of locus of control in the labor market. I begin with a discussion of the conceptual origins of locus of control, including its relationship to related concepts such as self-efficacy, motivation, and self-control. The relationship between locus of control and labor market success is then summarized. In doing so, I pay careful attention to what we know about three potential mechanisms – human capital investments, hiring decisions, and optimal incentive contracts – through which locus of control might operate. Finally, the broader implications of these relationships for public policy and future research are discussed.

Suggested Citation

  • Deborah Cobb-Clark, 2014. "Locus of Control and the Labor Market," Melbourne Institute Working Paper Series wp2014n25, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2014n25
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2014n25.pdf
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    More about this item

    Keywords

    Locus of control; labor markets; non-cognitive skills; behavioral labor economics;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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