Locus of Control and Performance Appraisal

Arbeitspapier

This work contributes to the literature demonstrating an important role for psychological traits in labor market decisions. We show that West German workers with an internal locus of control sort into jobs with performance appraisals. Appraisals provide workers who believe they control their environment a tool to demonstrate their value and achieve their goals. We confirm that workers who are risk tolerant also sort into jobs with performance appraisals but explain why the influence of the locus of control and risk tolerance should not be additive. We demonstrate this by estimating a routinely large and significantly negative interaction in our sorting equations. We also show that important patterns of sorting are revealed only when taking into account the interaction of locus of control and risk tolerance.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 10288

Classification and Topics

• Classification: Wirtschaft ; Compensation Packages; Payment Methods ; Personnel Economics: Compensation and Compensation Methods and Their Effects
• Subject: locus of control ; risk attitude ; performance appraisal ; performance pay ; sorting ; extrinsic rewards ; intrinsic motivation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heywood, John S. ; Jirjahn, Uwe ; Struewing, Cornelia
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/149147
• Last update: 10.03.2025, 11:44 AM CET