Locus of Control and the Labor Market
38 Pages Posted: 6 Dec 2014
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.
Keywords: locus of control, labor market, behavioral economics
JEL Classification: J01, J08
Suggested Citation: Suggested Citation