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Source: Journal of Economic Psychology
Resulting in 9 citations.
1. de Araujo, Pedro
Lagos, Stephen
Self-Esteem, Education, and Wages Revisited
Journal of Economic Psychology 34 (February 2013): 120-132.
Also: http://www.journals.elsevier.com/journal-of-economic-psychology/
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Educational Attainment; Gender Differences; Locus of Control (see Rotter Scale); Modeling; Self-Esteem; Wages

Personality undoubtedly plays a role in determining educational attainment and labor market outcomes. We investigate the role of self-esteem in determining wages directly and indirectly via education. We use data from the 1979 wave of the National Longitudinal Study of Youth (NLSY79) to estimate a three equation simultaneous equation model that treats self-esteem, educational attainment, and real wages as endogenous. We find that, while self-esteem has a positive and significant impact on wages indirectly via education, it does not significantly affect wages directly once we control for locus of control. We find that the indirect effect of self-esteem comprises upwards of 80% of the total effect of self-esteem on wages after 1980. Additionally, we find that wages and education both affect self-esteem. We discuss gender differences in the relationships between wages, education, and self-esteem and conclude that females experience a higher rate of return on education than males, and self-esteem is a stronger determinant of educational attainment for males than females.
Bibliography Citation
de Araujo, Pedro and Stephen Lagos. "Self-Esteem, Education, and Wages Revisited." Journal of Economic Psychology 34 (February 2013): 120-132.
2. DeBacker, Jason M.
Routon, P. Wesley
Expectations, Education, and Opportunity
Journal of Economic Psychology 59 (April 2017): 29-44.
Also: http://www.sciencedirect.com/science/article/pii/S0167487016302379
Cohort(s): NLSY97
Publisher: Elsevier
Keyword(s): Educational Attainment; Expectations/Intentions; Parental Influences; Socioeconomic Background

Using a long panel of youths, we establish a causal link between parental expectations regarding education and educational attainment. In particular, we use an instrumental variables approach to find that the child's chances of obtaining a high school or college degree are increasing in the parent's expectations of the likelihood of these events. We then use differences between the objective likelihood of a child's educational attainment and the parents' subjective probabilities to consider the hypothesis that lower educational outcomes among certain groups are driven by a "culture of despair," where children are low-achieving because they are expected to underachieve. While we do find that children from households with lower levels of income, wealth, and parental education are less likely to attain high school and college degrees, we reject the hypothesis that this is driven by low subjective expectations of educational success. Rather, we find that parents from disadvantaged groups have expectations for the educational outcomes of their children that differ more from the statistical likelihood of these outcomes than do parents of children from advantaged households. That is, we find that parents in more disadvantaged households are more optimistic about the educational outcomes of their children than those from more advantaged households.
Bibliography Citation
DeBacker, Jason M. and P. Wesley Routon. "Expectations, Education, and Opportunity." Journal of Economic Psychology 59 (April 2017): 29-44.
3. 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.
4. Goldsmith, Arthur H.
Veum, Jonathan R.
Darity, William A. Jr.
Are Being Unemployed and Being Out of the Labor Force Distinct States? A Psychological Approach
Journal of Economic Psychology 16,2 (July 1995): 275-295.
Also: http://www.sciencedirect.com/science/article/pii/016748709500009D
Cohort(s): NLSY79
Publisher: American Psychological Association (APA)
Keyword(s): Data Quality/Consistency; Heterogeneity; Labor Force Participation; Psychological Effects; Self-Esteem; Unemployment

Examined whether a difference in psychological well-being exists between unemployed people and labor force drop-outs (i.e., unemployed people who become so discouraged that they cease searching for employment). Data were from 12,686 persons (aged 14-22 years) in the National Longitudinal Survey of Youth, who have been interviewed annually since 1979. Joblessness fostered feelings of externality. Also, as duration of joblessness advanced so did feelings of helplessness, thus favoring the stages of psychological impairment theory. Data on the psychological status of the jobless are consistent with the view of K. B. Clark and L. H. Summers (1979) that the 2 forms of joblessness are effectively indistinguishable. (PsycINFO Database Copyright 1996 American Psychological Association, all rights reserved)
Bibliography Citation
Goldsmith, Arthur H., Jonathan R. Veum and William A. Jr. Darity. "Are Being Unemployed and Being Out of the Labor Force Distinct States? A Psychological Approach." Journal of Economic Psychology 16,2 (July 1995): 275-295.
5. Goldsmith, Arthur H.
Veum, Jonathan R.
Darity, William A. Jr.
The Impact of Labor Force History on Self-Esteem and Its Component Parts, Anxiety, Alienation and Depression
Journal of Economic Psychology 17,2 (April 1996): 183-220.
Also: http://www.sciencedirect.com/science/article/pii/0167487096000037
Cohort(s): NLSY79
Publisher: American Psychological Association (APA)
Keyword(s): Data Quality/Consistency; Employment; Heterogeneity; Labor Force Participation; Quits; Self-Esteem; Unemployment

Estimated the correlation between unemployment and self-esteem. A methodology that controls for 3 potential sources of bias (omitted variables, unobserved heterogeneity, and data selection) was used. Data were drawn from the US National Longitudinal Survey of Youth, which provided detailed information on the personal characteristics of 1,198 14-21 yr olds, including their self-esteem and labor force experiences. Evidence of the damage of joblessness on an individual's perception of self-worth was found. Exposure to bouts of both forms of joblessness (unemployment or time out of the labor force) was also found to harm self-esteem. Decompositional analysis suggested that joblessness damages self-esteem by generating feelings of depression. The authors suggest that policies designed to lessen joblessness will also yield a psychologically healthier labor force. (PsycINFO Database Copyright 1997 American Psychological Assn, all rights reserved)
Bibliography Citation
Goldsmith, Arthur H., Jonathan R. Veum and William A. Jr. Darity. "The Impact of Labor Force History on Self-Esteem and Its Component Parts, Anxiety, Alienation and Depression." Journal of Economic Psychology 17,2 (April 1996): 183-220.
6. Goldsmith, Arthur H.
Veum, Jonathan R.
Darity, William A. Jr.
Working Hard for the Money? Efficiency Wages and Worker Effort
Journal of Economic Psychology 21,4 (August 2000): 351-385.
Also: http://www.sciencedirect.com/science/article/pii/S0167487000000088
Cohort(s): NLSY79
Publisher: American Psychological Association (APA)
Keyword(s): Benefits; Locus of Control (see Rotter Scale); Rotter Scale (see Locus of Control); Simultaneity; Wage Levels; Wages

This paper offers a test of the relative wage version of the efficiency wage hypothesis - that firms are able to improve worker productivity by paying workers a wage premium. Psychologists believe work effort reflects motivation that is governed by a feature of personality referred to as locus of control. Measures of locus of control are available in the National Longitudinal Survey of Youth. Using data drawn from the NLSY in 1992, structural real wage and effort equation are simultaneously estimated. It is found that receiving an efficiency wage enhances a person's effort and that person's providing greater effort earn higher wages.
Bibliography Citation
Goldsmith, Arthur H., Jonathan R. Veum and William A. Jr. Darity. "Working Hard for the Money? Efficiency Wages and Worker Effort." Journal of Economic Psychology 21,4 (August 2000): 351-385.
7. Mohanty, Madhu Sudan
Effects of Positive Attitude on Happiness and Wage: Evidence from the US Data
Journal of Economic Psychology 30,6 (December 2009): 884-897.
Also: http://www.sciencedirect.com/science/article/pii/S016748700900097X
Cohort(s): NLSY79
Publisher: American Psychological Association (APA)
Keyword(s): Attitudes; Earnings; Endogeneity; Happiness (see Positive Affect/Optimism); Human Capital; Positive Affect (see Happiness/Optimism); Wage Levels; Well-Being; Work Attitudes

Using samples from the National Longitudinal Survey of Youth (1979), a longitudinal data set from the United States, this study demonstrates that the worker's positive attitude affects his/her wage not only directly, but also indirectly through its effects on happiness. Assuming endogeneity of the positive attitude variable and estimating happiness and attitude equations simultaneously by a two-step procedure, the study further finds the evidence that happiness also affects the worker's earnings both directly and indirectly. These findings suggest that any attempt to raise workers' earnings potentials should focus not only on the development of their human capital endowments, but also on improvement of their attitudes. [Copyright Elsevier]
Bibliography Citation
Mohanty, Madhu Sudan. "Effects of Positive Attitude on Happiness and Wage: Evidence from the US Data." Journal of Economic Psychology 30,6 (December 2009): 884-897.
8. Osborne Groves, Melissa
How Important Is Your Personality? Labor Market Returns to Personality for Women in the US and UK
Journal of Economic Psychology 26,6 (December 2005): 827-841.
Also: http://www.sciencedirect.com/science/article/pii/S0167487005000358
Cohort(s): Young Women
Publisher: American Psychological Association (APA)
Keyword(s): Britain, British; Cognitive Development; Cross-national Analysis; Economics of Gender; Educational Attainment; Human Capital; Modeling; NCDS - National Child Development Study (British); Occupational Choice; Skills; Training, Occupational; Training, On-the-Job; Wage Determination; Wage Differentials; Wage Levels; Wages, Women

Why do apparently similar people have varied success in the labor market? While cognitive performance and educational attainment have been shown to be strong indicators of economic success, there remains a large portion of unexplained variance in earnings after controlling for the standard variables. This paper uses the National Longitudinal Survey of Young Women and women from the National Child Development Study to explore the value of incorporating psychological traits into wage determination models. This research finds that traits such as locus of control, aggression, and withdrawal are all statistically significant factors in the wage determination models of white women. [ABSTRACT FROM AUTHOR; Copyright 2005 Elsevier]
Bibliography Citation
Osborne Groves, Melissa. "How Important Is Your Personality? Labor Market Returns to Personality for Women in the US and UK." Journal of Economic Psychology 26,6 (December 2005): 827-841.
9. Tang, Ning
Baker, Andrew
Self-Esteem, Financial Knowledge and Financial Behavior
Journal of Economic Psychology 54 (June 2016): 164-176.
Also: http://www.sciencedirect.com/science/article/pii/S0167487016301817
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Financial Behaviors/Decisions; Financial Literacy; Self-Esteem

Financial knowledge is an important but insufficient driver of responsible financial behavior. Having a positive evaluation of oneself may also be essential for individuals to initiate and persist with the daunting process of financial management. In this study, we distinguish subjective financial knowledge from objective financial knowledge, and we propose that self-esteem relates to financial behavior both directly as well as indirectly through subjective financial knowledge. Results based on a nationally representative dataset of U.S. adults suggest that self-esteem significantly relates to individual financial behavior after controlling for financial knowledge and other socioeconomic factors. The association between self-esteem and financial behavior could be both direct and indirect through subjective financial knowledge. These findings highlight the importance of psychological traits such as self-esteem in explaining financial behavior difference. Its implications are discussed.
Bibliography Citation
Tang, Ning and Andrew Baker. "Self-Esteem, Financial Knowledge and Financial Behavior." Journal of Economic Psychology 54 (June 2016): 164-176.