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Locus of Control and Job Turnover

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  • Taehyun Ahn

    () (School of Economics, Sogang University, SEOUL)

Abstract

In this paper, I investigate how a worker¡¯s locus of control, the perception of control over daily events, affects job-to-job and job-to-nonemployment turnover. I find that an increase in internality?the degree to which respondents believe that the outcomes of their life events are determined by their own actions versus external factors?increases job-to-job transitions. In addition, the data reveal that the annual wage growth rate and the wage gains from job-to-job transitions increase with internality. The influence of locus of control on job-to-nonemployment turnover, however, is insignificant once the worker¡¯s level of attained education is controlled for.

Suggested Citation

  • Taehyun Ahn, 2013. "Locus of Control and Job Turnover," Working Papers 1405, Research Institute for Market Economy, Sogang University, revised 2014.
  • Handle: RePEc:sgo:wpaper:1405
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    References listed on IDEAS

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    1. Juan D. Barón & Deborah Cobb-Clark, 2010. "Are Young People's Educational Outcomes Linked to their Sense of Control?," Borradores de Economia 599, Banco de la Republica de Colombia.
    2. Hansen, Karsten T. & Heckman, James J. & Mullen, K.J.Kathleen J., 2004. "The effect of schooling and ability on achievement test scores," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 39-98.
    3. Piatek, Rémi & Pinger, Pia, 2010. "Maintaining (Locus of) Control? Assessing the Impact of Locus of Control on Education Decisions and Wages," IZA Discussion Papers 5289, Institute for the Study of Labor (IZA).
    4. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x.
    5. James J. Heckman & John Eric Humphries & Sergio Urzua & Gregory Veramendi, 2010. "The effects of educational choices on labor market, health, and social outcomes," Working Papers 2011-002, Human Capital and Economic Opportunity Working Group.
    6. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Western Economic Association International, vol. 35(4), pages 815-829, October.
    7. Andrew D. McGee, 2015. "How the Perception of Control Influences Unemployed Job Search," ILR Review, Cornell University, ILR School, vol. 68(1), pages 184-211, January.
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    Cited by:

    1. Preuss, Malte & Hennecke, Juliane, 2017. "Biased by success and failure: How unemployment shapes stated locus of control," Discussion Papers 2017/29, Free University Berlin, School of Business & Economics.
    2. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2015. "Job Search, Locus of Control, and Internal Migration," IZA Discussion Papers 9600, Institute for the Study of Labor (IZA).
    3. Pia Pinger & Sebastian Schäfer & Heiner Schumacher, 2018. "Locus of Control and Consistent Investment Choices," CRC TR 224 Discussion Paper Series crctr224_015_2018, University of Bonn and University of Mannheim, Germany.
    4. Caliendo, Marco & Cobb-Clark, Deborah A. & Seitz, Helke & Uhlendorff, Arne, 2016. "Locus of Control and Investment in Training," IZA Discussion Papers 10406, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Locus of control; turnover;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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