Trapped, Delayed and Handicapped
29 Pages Posted: 28 May 2002
Date Written: April 2002
Abstract
The dynamics of self-confidence are modelled in an environment where rational individuals optimally choose education and occupations with the aim to acquire productive skills while learning about ability. It is shown how the presence of uninformative options can trap individuals below their potential. Furthermore the trade-off between probability of success and value of skills may induce uncertain individuals to acquire less productive skills on their way to ability intensive occupations. The value of information also induces uncertain individuals to delay labour market entry. The model can also explain differences in perseverance in the face of failure.
Keywords: Self-confidence, self-selection, skill accumulation, Bayesian learning
JEL Classification: D83, J24
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Social Comparison and Confidence: When Thinking You're Better than Average Predicts Overconfidence
-
Self Confidence: Intrapersonal Strategies
By Roland Bénabou and Jean Tirole
-
Betting on Own Knowledge: Experimental Test of Overconfidence
-
Overconfidence is a Social Signaling Bias
By Stephen V. Burks, Jeffrey P. Carpenter, ...
-
Paying for Confidence: An Experimental Study of the Demand for Non-Instrumental Information
By Kfir Eliaz and Andrew Schotter
-
Managing Self-Confidence: Theory and Experimental Evidence
By Markus M. Mobius, Muriel Niederle, ...