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Author: Lagos, Stephen
Resulting in 1 citation.
1. de Araujo, Pedro
Lagos, Stephen
Self-Esteem, Education, and Wages Revisited
Journal of Economic Psychology 34 (February 2013): 120-132.
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Educational Attainment; Gender Differences; Locus of Control (see Rotter Scale); Modeling; Self-Esteem; Wages

Personality undoubtedly plays a role in determining educational attainment and labor market outcomes. We investigate the role of self-esteem in determining wages directly and indirectly via education. We use data from the 1979 wave of the National Longitudinal Study of Youth (NLSY79) to estimate a three equation simultaneous equation model that treats self-esteem, educational attainment, and real wages as endogenous. We find that, while self-esteem has a positive and significant impact on wages indirectly via education, it does not significantly affect wages directly once we control for locus of control. We find that the indirect effect of self-esteem comprises upwards of 80% of the total effect of self-esteem on wages after 1980. Additionally, we find that wages and education both affect self-esteem. We discuss gender differences in the relationships between wages, education, and self-esteem and conclude that females experience a higher rate of return on education than males, and self-esteem is a stronger determinant of educational attainment for males than females.
Bibliography Citation
de Araujo, Pedro and Stephen Lagos. "Self-Esteem, Education, and Wages Revisited." Journal of Economic Psychology 34 (February 2013): 120-132.