Locus of control and job turnover

Abstract

In this article, I investigate how a worker's locus of control, that is, the perception of control over daily events, affects job-to-job and job-to-nonemployment turnover. I find that an increase in internality-the degree to which respondents believe that the outcomes of their life events are determined by their own actions versus external factors-increases job-to-job transitions. In addition, the annual wage growth rate and the wage gains from job-to-job transitions increase with internality. The influence of the locus of control on job-to-nonemployment turnover, however, is insignificant on controlling for the worker's level of attained education. (JEL D83, J63)