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Locus of Control and Human Capital Investment Revisited

This paper examines the effect of teenagers’ outlooks—specified as their locus of control—on educational attainment and labor market outcomes. I replicate the study of Coleman and DeLeire (2003) and test the predictions of their theoretical model using a different data set—National Longitudinal Survey of Youth (NLSY). The findings fail to support the predictions of the model and suggest that locus of control is not a significant determinant of educational outcomes once cognitive ability is controlled for; however, locus of control is rewarded in the labor market later in life.