Locus of Control and low-wage mobility

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. IAB Nuremberg AbstractWe investigate whether non-cognitive skills -in particular Locus of Control -are important determinants of the labour market processes at the low-wage margin. Based on data from the German Socio-Economic Panel, we estimate dynamic multinomial logit models with random effects and investigate whether Locus of Control influences the probability of being higherpaid or low-paid as well as the probability of escaping low wages by moving up to higherpaid employment. Our results reveal a significant amount of state dependence in low pay even after controlling for Locus of Control and other non-cognitive skills. Furthermore, compared to individuals with an external Locus of Control, individuals with a more internal Locus of Control have a significantly higher probability of being higher-paid instead of low-paid. Conditional on being low-paid, individuals with an internal Locus of Control additionally have a significantly higher probability of moving to higher-paid employment in the following year than individuals with an externa...

Working, but not for a living: a longitudinal study on the psychological consequences of economic vulnerability among German employees

“…However, the timing of measurements is also an advantage with regard to causality, as we show that income from the previous year predicts current sense of control and life satisfaction, as well as subsequent mental health. In combination with the robust effects of within-person changes, it thus seems likely that economic vulnerability undermines sense of control and in turn mental well-being, rather than (or in addition to) trait sense of control predicting earnings (see Schnitzlein & Stephani, 2016;Spears, 2011). Future studies could theorize more explicitly on temporal aspects in the relationship between economic vulnerability and mental well-being, such as adaptation to chronic versus occasional economic vulnerability, as it has been discussed for other economic stressors (e.g.…”

Biased by Success and Failure: How Unemployment Shapes Stated Locus of Control

“…Additionally, as stated by Heckman (2011, p. 31), policy makers would gain a new 'avenue for intervention and policy' as the psychological impact of unemployment has been underestimated so far. Gathering specific insights on LOC's stability after job-loss, during unemployment 1 Additionally, studies have found an significant effect of LOC on entrepreneurial activity (Hansemark, 2003;Caliendo et al, 2014), occupational attainment and advancement (Andrisani, 1977;Cobb-Clark and Tan, 2011;Ahn, 2015;Schnitzlein and Stephani, 2016), maternity leave (Berger and Haywood, 2016), internal migration (Caliendo et al, 2015a), health behavior (Cobb-Clark et al, 2014), parental investment (Lekfuangfu et al, 2017), unemployment duration (Uhlendorff, 2004), selection into performance appraisal (Heywood et al, 2017), job satisfaction (Ng et al, 2006) and employment-related training (Caliendo et al, 2016). See Cobb-Clark (2015) for a comprehensive overview on LOC and labor market outcomes.…”

The Impact of Personality Traits on Wage Growth and the Gender Wage Gap

“…Further measures of personality traits are an individual's Locus of Control (LoC) and an individual's reciprocity. LoC is associated with an individual's perception that his or her outcomes in life are mainly affected by the actions of other people and are thus beyond their control (see, e.g., Rotter, ; Schnitzlein and Stephani, ). Reciprocity refers to the individual's behaviour with respect to friendly/unfriendly actions of other people.…”

“…A high value of a trait constructed in this way indicates a high outcome of the respective personality dimension (see Heineck and Anger, ). For the construction of LoC, we rely on a procedure suggested by Schnitzlein and Stephani (), which is more general than the concept used by Heineck and Anger (). Seven items with responses on a 7‐point Likert scale are used.…”