Change in self-efficacy as a source of state dependence in labor market dynamics?

Alexander Mosthaf

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: Using the PASS survey, I analyze the relationship between employment and self-efficacy. Estimating a dynamic model which takes into account reverse causality and selection on unobservables, I show that employment positively affects self-efficacy and vice versa. Hence, changes in the personal trait self-efficacy may be a source of state dependence in labor market dynamics. Hence, reverse causality should be taken into account when estimating the effect of self-efficacy on labor market outcomes.

JEL-codes: J60 (search for similar items in EconPapers)
Date: 2017
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