Article thumbnail

Maintaining (locus of) control? Assessing the impact of locus of control on education decisions and wages

By Rémi Piatek and Pia R. Pinger


This paper establishes that individuals with an internal locus of control, i.e., who believe that reinforcement in life comes from their own actions instead of being determined by luck or destiny, earn higher wages. However, this positive effect only translates into labor income via the channel of education. Factor structure models are implemented on an augmented data set coming from two different samples. By so doing, we are able to correct for potential biases that arise due to reverse causality and spurious correlation, and to investigate the impact of premarket locus of control on later outcomes. --locus of control,wages,latent factor model,data set combination

OAI identifier:

Suggested articles


  1. (2006a): “Earnings Functions, Rates of Return and Treatment Effects:
  2. (2006b): “The Effects of Cognitive and Noncognitive
  3. (1996). Accelerating Monte Carlo Markov Chain Convergence for Cumulative-Link Generalized Linear Models,”
  4. (2003). An Economic Model of Locus of Control and the Human Capital Investment Decision,”
  5. (2010). Are Risk Aversion and Impatience Related to Cognitive Ability?”
  6. (1995). Bayesian Density Estimation and Inference Using
  7. (1983). Bayesian Density Estimation by Mixtures of Normal Distributions,”
  8. (2010). Bayesian Inference for Factor Structure Models via Gibbs Sampling,” Unpublished technical report.
  9. Bono (2001): “Relationship of Core Self-Evaluations Traits-SelfEsteem, Generalized Self-Efficacy, Locus of Control, and Emotional Stability-with Job Satisfaction and Job Performance: A Meta-Analysis,”
  10. (2005). Can work alter welfare recipients’ beliefs?”
  11. (2006). Causal Returns to Education: A Survey on Empirical Evidence for Germany,”
  12. (1986). Density Estimation for Statistics and Data Analysis,
  13. (2004). Der Einfluss von Pers¨ onlichkeitseigenschaften und sozialen Ressourcen auf die
  14. (2010). Educational expansion and its heterogeneous returns for wage workers,”
  15. (2010). Estimating the Returns to Schooling: a Likelihood Approach Based on Normal Mixtures,”
  16. (2001). Factor Analysis of Ordinal Variables: A 38Comparison of Three Approaches,”
  17. (2008). Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation,”
  18. (2000). Generalised Gibbs Sampler and Multigrid Monte Carlo for
  19. (1966). Generalized Expectancies for Internal versus
  20. (2007). Going Beyond Returns to Education: The Effect of Noncognitive Skills on Wages in Germany,” Paper presented at the European Meeting of the Econometric Society,
  21. Heckman (2003): “Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on
  22. (2006). High school completion and future youth unemployment: new evidence from High School and Beyond,”
  23. (1964). Human Capital: A Theoretical and Empirical Analysis, With Special Reference to Education,
  24. (1977). Internal-External Attitudes, Personal Initiative, and the Labor Market Experience
  25. (1981). Internal-External Attitudes, Sense of Efficacy, and Labor Market Experience: A Reply to Duncan and
  26. (2010). Interrelationship among Locus of Control and Years
  27. (1958). Investment in Human Capital and Personal Income Distribution,”
  28. (2009). Job Durations with Worker and Firm Specific Effects:
  29. (2004). Learning about heterogeneity in returns to schooling,”
  30. (2007). Locus of Control and Human Capital Investment Revisited,”
  31. (1992). Multivariate Density Estimation: Theory, Practice, and Visualization, Wiley Interscience.
  32. (1967). On Characterizing the Gamma and the Normal Distribution,”
  33. (2000). Private Ertr¨ age von
  34. (1996). Reparameterizing the Generalized Linear Model to Accelerate Gibbs Sampler Convergence,”
  35. (1981). Returns to education: an updated international comparison,”
  36. (1979). Sample Selection Bias as a Specification Error,”
  37. (2002). Schooling in Capitalist America Revisited,”
  38. (2005). Separating Uncertainty from Heterogeneity
  39. (2004). Size Matters: the Standard Error of
  40. (2008). ter Weel
  41. (1987). The Calculation of Posterior Distributions by Data Augmentation,”
  42. (1999). The causal effect of education on earnings,”
  43. (2001). The Determinants of Earnings: A Behavioral Approach,”
  44. (2000). The Power of Personality: Labor Market Rewards and the Transmission of Earnings,” Ph.D. thesis,
  45. (2010). The Returns to Cognitive Abilities and Personality Traits in
  46. (1979). The Wage Effects of Marital Status and
  47. (2008). Zero returns to compulsory schooling in Germany: Evidence and interpretation,”

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.