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Can having internal locus of control insure against negative shocks? Psychological evidence from panel data

Buddelmeyer, Hielke and Powdthavee, Nattavudh (2015) Can having internal locus of control insure against negative shocks? Psychological evidence from panel data. Journal of Economic Behavior and Organization, 122. pp. 88-109. ISSN 0167-2681

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Identification Number: 10.1016/j.jebo.2015.11.014

Abstract

We investigate whether the intensity of emotional pain following a negative shock is different across the distribution of a person's locus of control – the extent to which individuals believe that their actions can influence future outcomes. Using panel data from Australia, we show that individuals with strong internal locus of control are psychologically insured against own and others’ serious illness or injury, close family member detained in jail, becoming a victim of property crime and death of a close friend, but not against the majority of other life events. The buffering effects vary across gender. Our findings thus add to the existing literature on the benefits of internal locus of control.

Item Type: Article
Official URL: http://www.sciencedirect.com/science/journal/01672...
Additional Information: © 2016 Elsevier B.V.
Subjects: B Philosophy. Psychology. Religion > BF Psychology
H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification: I - Health, Education, and Welfare > I1 - Health > I19 - Other
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 20 Apr 2016 10:42
Last Modified: 20 Sep 2017 12:37
Projects: R01AG040640
Funders: US National Institute on Aging, John Templeton Foundation, What Works Centre for Wellbeing
URI: http://eprints.lse.ac.uk/id/eprint/66190

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