The long run effects of self-confidence on the labour market A test on Hungarian data

Abstract

It is easy to see that highly fatalistic, low-efficacy persons believe that their actions have little outcome. Because greater fatalism lowers an employee’s desired effort level, it may result in lower wages, while the anti-fatalistic attitude translates into more effective work that in turn may be rewarded with a higher salary. The examined self-confidence scale is very similar than the most widely used Rotter locus of control scale. People with high self confidence are determined, feel to have an influence on their future and are optimistic. I examine not only the wage-impact, but also human capital impact of self-confidence.