Locus of Control and Job Search Strategies
36 Pages Posted: 15 Feb 2010
There are 2 versions of this paper
Locus of Control and Job Search Strategies
Abstract
Standard job search theory assumes that unemployed individuals have perfect information about the effect of their search effort on the job offer arrival rate. In this paper, we present an alternative model which assumes instead that each individual has a subjective belief about the impact of his or her search effort on the rate at which job offers arrive. These beliefs depend in part on an individual's locus of control, i.e., the extent to which a person believes that future outcomes are determined by his or her own actions as opposed to external factors. We estimate the impact of locus of control on job search behavior using a novel panel data set of newly-unemployed individuals in Germany. Consistent with our theoretical predictions, we find evidence that individuals with an internal locus of control search more and that individuals who believe that their future outcomes are determined by external factors have lower reservation wages.
Keywords: job search behavior, search effort, reservation wage, locus of control, unemployment duration
JEL Classification: J64
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior
By James J. Heckman, Jora Stixrud, ...
-
The Technology of Skill Formation
By Flavio Cunha and James J. Heckman
-
The Technology of Skill Formation
By Flavio Cunha and James J. Heckman
-
Interpreting the Evidence on Life Cycle Skill Formation
By Flavio Cunha, James J. Heckman, ...
-
Interpreting the Evidence on Life Cycle Skill Formation
By Flavio Cunha, James J. Heckman, ...
-
Estimating the Technology of Cognitive and Noncognitive Skill Formation
By Flavio Cunha, James J. Heckman, ...
-
Estimating the Technology of Cognitive and Noncognitive Skill Formation
By Flavio Cunha, James J. Heckman, ...
-
The Economics and Psychology of Personality Traits
By Lex Borghans, Angela Duckworth, ...
-
The Economics and Psychology of Personality Traits
By Lex Borghans, Angela Duckworth, ...