RT Journal Article
SR Electronic
T1 Locus of Control and Investment in Training
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 1311
OP 1349
DO 10.3368/jhr.57.4.0318-9377R2
VO 57
IS 4
A1 Marco Caliendo
A1 Deborah A. Cobb-Clark
A1 Cosima Obst
A1 Helke Seitz
A1 Arne Uhlendorff
YR 2022
UL http://jhr.uwpress.org/content/57/4/1311.abstract
AB 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.