Search Results
Author: Drago, Francesco
Resulting in 2 citations.
| 1. |
Drago, Francesco |
|
Self-Esteem and Earnings IZA Discussion Paper No. 3577, Institute for the Study of Labor, June 2008. Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1158974# Cohort(s): NLSY79 Publisher: Institute for the Study of Labor (IZA) Keyword(s): Misclassification, Mismeasurement; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Self-Esteem; Self-Reporting; Wage Models Permission to reprint the abstract has not been received from the publisher. Recent research in economics suggests a positive association between self-esteem and earnings. A major problem in this literature is that from simple cross-sectional wage regressions it is not possible to conclude that self-esteem has a causal impact on earnings. While classical measurement error leads to an attenuation bias, reverse causality and omitted variable are likely to drive the OLS coefficient on self-esteem upward. Using the National Longitudinal Survey of Youth (NLSY) that administered the Rosenberg Self-Esteem Scale during the 1980 and 1987 interviews, I provide further evidence for the existence of a self-esteem premium by exploiting variation in these measures in the two years. I show that the estimated impact of self-esteem in 1987 on earnings is about two times greater than previous OLS estimates would imply. The main explanation for this result is the large extent of measurement error in the reported self-esteem measure. |
|
|
Bibliography Citation
Drago, Francesco. "Self-Esteem and Earnings." IZA Discussion Paper No. 3577, Institute for the Study of Labor, June 2008. |
| 2. |
Drago, Francesco |
|
Self-esteem and Earnings Journal of Economic Psychology 32,3 (June 2011): 480-488. Also: http://www.sciencedirect.com/science/journal/01674870 Cohort(s): NLSY79 Publisher: Elsevier Keyword(s): Earnings; Modeling, OLS; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Self-Esteem; Variables, Instrumental Recent research in economics suggests a positive association between self-esteem and earnings. Using the National Longitudinal Survey of Youth (NLSY), which administered the Rosenberg Self-Esteem Scale during its 1980 and 1987 interviews, I provide further evidence for the existence of a self-esteem premium by exploiting variation in these measures between the 2 years. I show that self-esteem in 1980 has a sizeable impact on wages 8 years later, controlling for a wide set of individual characteristics and addressing problems of omitted variable bias and reverse causality. The instrumental variables estimate of the effect of self-esteem in 1987 on earnings is about two times greater than previous OLS estimates would imply. The main explanation for this discrepancy is that the previous OLS estimates are biased downward as a result of measurement error in the reported self-esteem measure. [Copyright © Elsevier] |
|
|
Bibliography Citation
Drago, Francesco. "Self-esteem and Earnings." Journal of Economic Psychology 32,3 (June 2011): 480-488.
|