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Locus of Control and the Labor Market

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  • Cobb-Clark, Deborah A.

    (University of Sydney)

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

  • Cobb-Clark, Deborah A., 2014. "Locus of Control and the Labor Market," IZA Discussion Papers 8678, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8678
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    More about this item

    Keywords

    locus of control; behavioral economics; labor market;
    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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