IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v38y2009i2p357-371.html
   My bibliography  Save this article

Effects of positive attitude on earnings: Evidence from the US longitudinal data

Author

Listed:
  • Mohanty, Madhu S.

Abstract

To examine whether or not the worker's attitude to life affects his/her earnings, this study estimates wage equations with positive attitude as an explanatory variable under different econometric specifications. The results obtained from both cross-sectional and panel data confirm that positive and optimistic attitude to life influence the worker's wages positively, and that the magnitude of this effect is comparable to or even higher than the individual effects of the standard human capital variables on earnings. The study further demonstrates that in addition to its direct effects, positive attitude also affects earnings indirectly through its effects on schooling.

Suggested Citation

  • Mohanty, Madhu S., 2009. "Effects of positive attitude on earnings: Evidence from the US longitudinal data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 357-371, March.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:2:p:357-371
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/B6W5H-4T4J857-4/2/c469ca641839a6017c7d6b03e9153fa1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Card & Alan B. Krueger, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 151-200.
    2. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    3. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    4. Herbert Gintis & Samuel Bowles & Melissa Osborne, 2001. "Incentive-Enhancing Preferences: Personality, Behavior, and Earnings," American Economic Review, American Economic Association, vol. 91(2), pages 155-158, May.
    5. Groves, Melissa Osborne, 2005. "How important is your personality? Labor market returns to personality for women in the US and UK," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 827-841, December.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    7. Arthur Goldsmith & William Darity & Jonathan Veum, 1998. "Race, cognitive skills, psychological capital and wages," The Review of Black Political Economy, Springer;National Economic Association, vol. 26(2), pages 9-21, December.
    8. Jacob Mincer, 1962. "On-the-Job Training: Costs, Returns, and Some Implications," NBER Chapters, in: Investment in Human Beings, pages 50-79, National Bureau of Economic Research, Inc.
    9. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August.
    10. Behrman, Jere R & Taubman, Paul, 1989. "Is Schooling "Mostly in the Genes"? Nature-N urture Decomposition Using Data on Relatives," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1425-1446, December.
    11. Zabel, Jeffrey E., 1992. "Estimating fixed and random effects models with selectivity," Economics Letters, Elsevier, vol. 40(3), pages 269-272, November.
    12. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Other publications TiSEM 7ec34a6c-1d84-4052-971c-d, Tilburg University, School of Economics and Management.
    13. Vella, Francis & Verbeek, Marno, 1999. "Two-step estimation of panel data models with censored endogenous variables and selection bias," Journal of Econometrics, Elsevier, vol. 90(2), pages 239-263, June.
    14. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    15. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    16. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800, Elsevier.
    17. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
    18. MS Mohanty, 2001. "Determination Of Participation Decision, Hiring Decision, And Wages In A Double Selection Framework: Male‐Female Wage Differentials In The U.S. Labor Market Revisited," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 197-212, April.
    19. Nyhus, Ellen K. & Pons, Empar, 2005. "The effects of personality on earnings," Journal of Economic Psychology, Elsevier, vol. 26(3), pages 363-384, June.
    20. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    21. Glen R. Waddell, 2006. "Labor-Market Consequences of Poor Attitude and Low Self-Esteem in Youth," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 69-97, January.
    22. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bartolini, Stefano & O’Connor, Kelsey J., 2022. "Effects of teaching practices on life satisfaction and test scores: evidence from the Program for International Student Assessment (PISA)," GLO Discussion Paper Series 1009, Global Labor Organization (GLO).
    2. Vinod Mishra & Russell Smyth, 2012. "It Pays to Be Happy (If You are a Man): Subjective Wellbeing and the Gender Wage Gap in Urban China," Monash Economics Working Papers 51-12, Monash University, Department of Economics.
    3. Wim Naudé & José Ernesto Amorós & Oscar Cristi, 2011. "‘Surfeiting, The Appetite May Sicken’: Entrepreneurship and the Happiness of Nations," Working Papers 2011/07, Maastricht School of Management.
    4. Nasir Javed Awan, 2024. "Unveiling Charismatic Leadership: Catalysts of Positive Work Attitude, Job Involvement, and Work Engagement," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 532-545.
    5. Kelsey J. O'Connor, 2020. "Life Satisfaction and Noncognitive Skills: Effects on the Likelihood of Unemployment," Kyklos, Wiley Blackwell, vol. 73(4), pages 568-604, November.
    6. Madhu S. Mohanty, 2019. "Role of psychological variables in the determination of the worker's wage: Further evidence from the United States," Australian Economic Papers, Wiley Blackwell, vol. 58(1), pages 54-77, March.
    7. Mohanty, Madhu S. & Ullah, Aman, 2012. "Direct and indirect effects of happiness on wage: A simultaneous equations approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 143-152.
    8. Mohanty, Madhu Sudan, 2012. "Effects of positive attitude and optimism on wage and employment: A double selection approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(3), pages 304-316.
    9. Marta Lachowska, 2017. "Outside options and wages: What can we learn from subjective assessments?," Empirical Economics, Springer, vol. 52(1), pages 79-121, February.
    10. Zhen Cui, 2018. "Happiness and consumption: evidence from China," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(4), pages 403-419, December.
    11. Ajayi,Kehinde & Das,Smita & Delavallade,Clara Anne & Ketema,Tigist Assefa & Rouanet,Lea Marie, 2022. "Gender Differences in Socio-Emotional Skills and Economic Outcomes : New Evidencefrom 17 African Countries," Policy Research Working Paper Series 10197, The World Bank.
    12. Madhu S. Mohanty, 2018. "Does Positive Attitude Matter Only for Older Workers? Evidence from Simultaneous Estimation of Job Satisfaction, Wage and Positive Attitude in the United States," Journal of Happiness Studies, Springer, vol. 19(8), pages 2373-2404, December.
    13. Mohanty, Madhu Sudan, 2010. "Effects of positive attitude and optimism on employment: Evidence from the US data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 258-270, April.
    14. Mohanty, Madhu S., 2009. "Effects of positive attitude on happiness and wage: Evidence from the US data," Journal of Economic Psychology, Elsevier, vol. 30(6), pages 884-897, December.
    15. Miguel Lopes & Patricia Palma & Miguel e Cunha, 2011. "Tolerance is Not Enough: The Moderating Role of Optimism on Perceptions of Regional Economic Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 102(2), pages 333-350, June.
    16. Bidisha Chakraborty & Souparna Maji & Anamika Sen & Isha Mallik & Sayantan Baidya & Esha Dwibedi, 2019. "A Study on Happiness and Related Factors Among Indian College Students," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 215-236, March.
    17. Uysal, Selver Derya & Pohlmeier, Winfried, 2011. "Unemployment duration and personality," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 980-992.
    18. Ertan Yörük, Ceren & Yörük, Barış K., 2012. "The impact of drinking on psychological well-being: Evidence from minimum drinking age laws in the United States," Social Science & Medicine, Elsevier, vol. 75(10), pages 1844-1854.
    19. Yuna Ma & Jiafeng Gu & Ruixi Lv, 2022. "Job Satisfaction and Alcohol Consumption: Empirical Evidence from China," IJERPH, MDPI, vol. 19(2), pages 1-15, January.
    20. Madhu S. Mohanty, 2016. "Effect of religious attendance on years of schooling in the USA," Education Economics, Taylor & Francis Journals, vol. 24(4), pages 411-426, August.
    21. Wim Naudé & José Amorós & Oscar Cristi, 2014. "“Surfeiting, the appetite may sicken”: entrepreneurship and happiness," Small Business Economics, Springer, vol. 42(3), pages 523-540, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohanty, Madhu Sudan, 2010. "Effects of positive attitude and optimism on employment: Evidence from the US data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 258-270, April.
    2. Mohanty, Madhu S., 2009. "Effects of positive attitude on happiness and wage: Evidence from the US data," Journal of Economic Psychology, Elsevier, vol. 30(6), pages 884-897, December.
    3. Mohanty, Madhu Sudan, 2012. "Effects of positive attitude and optimism on wage and employment: A double selection approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(3), pages 304-316.
    4. Gensowski, Miriam, 2018. "Personality, IQ, and lifetime earnings," Labour Economics, Elsevier, vol. 51(C), pages 170-183.
    5. Jutta Viinikainen & Katja Kokko & Lea Pulkkinen & Jaakko Pehkonen, 2010. "Personality and Labour Market Income: Evidence from Longitudinal Data," LABOUR, CEIS, vol. 24(2), pages 201-220, June.
    6. Nizalova, Olena Y. & Sliusarenko, Tamara & Shpak, Solomiya, 2016. "The motherhood wage penalty in times of transition," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 56-75.
    7. Madhu S. Mohanty, 2019. "Role of psychological variables in the determination of the worker's wage: Further evidence from the United States," Australian Economic Papers, Wiley Blackwell, vol. 58(1), pages 54-77, March.
    8. de Araujo, Pedro & Lagos, Stephen, 2013. "Self-esteem, education, and wages revisited," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 120-132.
    9. Solomon Polachek, 2003. "Mincer's Overtaking Point and the Life Cycle Earnings Distribution," Review of Economics of the Household, Springer, vol. 1(4), pages 273-304, December.
    10. Katrin John & Stephan Thomsen, 2014. "Heterogeneous returns to personality: the role of occupational choice," Empirical Economics, Springer, vol. 47(2), pages 553-592, September.
    11. Bushra Yasmin, 2009. "Trade Liberalization and the Lead Role of Human Capital and Job Attributes in Wage Determination: The Case of Pakistan’s Labor Market," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 14(1), pages 1-37, Jan-Jun.
    12. Kostas Mavromaras & Seamus McGuinness & Nigel O'Leary & Peter Sloane & Zhang Wei, 2013. "Job Mismatches and Labour Market Outcomes: Panel Evidence on University Graduates," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 382-395, September.
    13. Domenico Depalo & Sabrina Di Addario, "undated". "Shedding Light on Inventors' Returns to Patents," Development Working Papers 375, Centro Studi Luca d'Agliano, University of Milano.
    14. Glewwe, Paul & Huang, Qiuqiong & Park, Albert, 2017. "Cognitive skills, noncognitive skills, and school-to-work transitions in rural China," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 141-164.
    15. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    16. William H. Greene & David A. Hensher, 2008. "Modeling Ordered Choices: A Primer and Recent Developments," Working Papers 08-26, New York University, Leonard N. Stern School of Business, Department of Economics.
    17. Fossen, Frank M. & Büttner, Tobias J.M., 2013. "The returns to education for opportunity entrepreneurs, necessity entrepreneurs, and paid employees," Economics of Education Review, Elsevier, vol. 37(C), pages 66-84.
    18. Artés, Joaquín, 2009. "Long-run versus short-run decisions: R&D and market structure in Spanish firms," Research Policy, Elsevier, vol. 38(1), pages 120-132, February.
    19. Ryuichi Okumura & Hiroshi Deguchi, 2021. "Indicating human capital including non-economic value," Evolutionary and Institutional Economics Review, Springer, vol. 18(1), pages 45-62, April.
    20. Ibrahim Mohammed & Priscilla Twumasi Baffour & Wassiuw Abdul Rahaman, 2021. "Gender Differences in Earnings Rewards to Personality Traits in Wage-employment and Self-employment Labour Markets," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 46(2), pages 204-228, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:38:y:2009:i:2:p:357-371. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.