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

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  • Mosthaf, Alexander

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.

Suggested Citation

  • Mosthaf, Alexander, 2017. "Change in self-efficacy as a source of state dependence in labor market dynamics?," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168131, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168131
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    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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    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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