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Open Access

Locus of Control and Investment in Training

Marco Caliendo, Deborah A. Cobb-Clark, Cosima Obst, Helke Seitz and Arne Uhlendorff
Journal of Human Resources, July 2022, 57 (4) 1311-1349; DOI: https://doi.org/10.3368/jhr.57.4.0318-9377R2
Marco Caliendo
Marco Caliendo is a professor at the University of Potsdam and a research fellow at IZA, DIW, and IAB ().
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  • For correspondence: [email protected]
Deborah A. Cobb-Clark
Deborah A. Cobb-Clark is a professor at the University of Sydney and a research fellow at IZA and the ARC Life Course Centre.
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Cosima Obst
Cosima Obst is a research assistant at the University of Potsdam.
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Helke Seitz
Helke Seitz is a junior policy analyst at OECD.
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Arne Uhlendorff
Arne Uhlendorff is CNRS researcher at the CREST and a research fellow at IAB, IZA, and DIW.
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ABSTRACT

We extend standard models of work-related training by explicitly incorporating workers’ locus of control into the investment decision through the returns they expect. Our model predicts that higher internal control results in increased take-up of general, but not specific, training. This prediction is empirically validated using data from the German Socioeconomic Panel (SOEP). We provide empirical evidence that locus of control influences participation in training through its effect on workers’ expectations about future wage increases rather than actual wage increases. Our results provide an important explanation for underinvestment in training and suggest that those with an external sense of control may require additional training support.

JEL Classification:
  • J24
  • C23
  • D84
  • Received March 2018.
  • Accepted March 2020.

This open access article is distributed under the terms of the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0) and is freely available online at: http://jhr.uwpress.org. Marco Caliendo https://orcid.org/0000-0002-5887-3037

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Journal of Human Resources: 57 (4)
Journal of Human Resources
Vol. 57, Issue 4
1 Jul 2022
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Locus of Control and Investment in Training
Marco Caliendo, Deborah A. Cobb-Clark, Cosima Obst, Helke Seitz, Arne Uhlendorff
Journal of Human Resources Jul 2022, 57 (4) 1311-1349; DOI: 10.3368/jhr.57.4.0318-9377R2

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Locus of Control and Investment in Training
Marco Caliendo, Deborah A. Cobb-Clark, Cosima Obst, Helke Seitz, Arne Uhlendorff
Journal of Human Resources Jul 2022, 57 (4) 1311-1349; DOI: 10.3368/jhr.57.4.0318-9377R2
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Keywords

  • J24
  • C23
  • D84
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