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

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  • Alexander Mosthaf

    (Johannes Gutenberg-University Mainz, Germany)

Abstract

Personal traits are often treated as time-constant, partly because of the lack of longitudinal data on personal traits. Using the first eight waves of the German PASS panel survey containing yearly information on self-efficacy, the paper analyzes the stability of self-efficacy and the relationship between employment dynamics and self-efficacy. Descriptive evidence shows that the within variation in self-efficacy is rather small. Models not controlling for unobserved heterogeneity point to a positive effect of self-efficacy on the employment probability and vice versa. However, dynamic discrete choice models which take unobserved heterogeneity and reverse causality into account reveal that the impact of employment status on self-efficacy is close to zero.

Suggested Citation

  • Alexander Mosthaf, 2017. "Change in self-efficacy as a source of state dependence in labor market dynamics?," Working Papers 1715, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    • Handle: RePEc:jgu:wpaper:1715
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    File URL: https://download.uni-mainz.de/RePEc/pdf/Discussion_Paper_1715.pdf
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    Cited by:

    1. Gabriele Angori & David Aristei, 2020. "Heterogeneity and state dependence in firms’ access to credit: Microevidence from the euro area," SEEDS Working Papers 0220, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Feb 2020.

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    Keywords

    state dependence; personal traits;

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