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Effects of positive attitude on earnings: Evidence from the US longitudinal data

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  • Mohanty, Madhu S.

Abstract

To examine whether or not the worker's attitude to life affects his/her earnings, this study estimates wage equations with positive attitude as an explanatory variable under different econometric specifications. The results obtained from both cross-sectional and panel data confirm that positive and optimistic attitude to life influence the worker's wages positively, and that the magnitude of this effect is comparable to or even higher than the individual effects of the standard human capital variables on earnings. The study further demonstrates that in addition to its direct effects, positive attitude also affects earnings indirectly through its effects on schooling.

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  • Mohanty, Madhu S., 2009. "Effects of positive attitude on earnings: Evidence from the US longitudinal data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 357-371, March.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:2:p:357-371
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    5. Kelsey J. O'Connor, 2020. "Life Satisfaction and Noncognitive Skills: Effects on the Likelihood of Unemployment," Kyklos, Wiley Blackwell, vol. 73(4), pages 568-604, November.
    6. Madhu S. Mohanty, 2019. "Role of psychological variables in the determination of the worker's wage: Further evidence from the United States," Australian Economic Papers, Wiley Blackwell, vol. 58(1), pages 54-77, March.
    7. Mohanty, Madhu S. & Ullah, Aman, 2012. "Direct and indirect effects of happiness on wage: A simultaneous equations approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 143-152.
    8. Mohanty, Madhu Sudan, 2012. "Effects of positive attitude and optimism on wage and employment: A double selection approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(3), pages 304-316.
    9. Marta Lachowska, 2017. "Outside options and wages: What can we learn from subjective assessments?," Empirical Economics, Springer, vol. 52(1), pages 79-121, February.
    10. Zhen Cui, 2018. "Happiness and consumption: evidence from China," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(4), pages 403-419, December.
    11. Ajayi,Kehinde & Das,Smita & Delavallade,Clara Anne & Ketema,Tigist Assefa & Rouanet,Lea Marie, 2022. "Gender Differences in Socio-Emotional Skills and Economic Outcomes : New Evidencefrom 17 African Countries," Policy Research Working Paper Series 10197, The World Bank.
    12. Madhu S. Mohanty, 2018. "Does Positive Attitude Matter Only for Older Workers? Evidence from Simultaneous Estimation of Job Satisfaction, Wage and Positive Attitude in the United States," Journal of Happiness Studies, Springer, vol. 19(8), pages 2373-2404, December.
    13. Mohanty, Madhu Sudan, 2010. "Effects of positive attitude and optimism on employment: Evidence from the US data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 258-270, April.
    14. Mohanty, Madhu S., 2009. "Effects of positive attitude on happiness and wage: Evidence from the US data," Journal of Economic Psychology, Elsevier, vol. 30(6), pages 884-897, December.
    15. Miguel Lopes & Patricia Palma & Miguel e Cunha, 2011. "Tolerance is Not Enough: The Moderating Role of Optimism on Perceptions of Regional Economic Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 102(2), pages 333-350, June.
    16. Bidisha Chakraborty & Souparna Maji & Anamika Sen & Isha Mallik & Sayantan Baidya & Esha Dwibedi, 2019. "A Study on Happiness and Related Factors Among Indian College Students," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 215-236, March.
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