2015
DOI: 10.2139/ssrn.2616082
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Can Having Internal Locus of Control Insure Against Negative Shocks? Psychological Evidence from Panel Data

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 frie… Show more

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Cited by 31 publications
(38 citation statements)
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“…Besides, they present two well-supported resilience factors (Helmreich et al, 2017). For locus of control, however, previous findings concerning a protective function were more inconsistent (e.g., Buddelmeyer & Powdthaveeb, 2017). Thus, the ability to recover from stress, self-efficacy, and optimism on the one hand and internal and external locus of control on the other could load on different factors.…”
mentioning
confidence: 90%
“…Besides, they present two well-supported resilience factors (Helmreich et al, 2017). For locus of control, however, previous findings concerning a protective function were more inconsistent (e.g., Buddelmeyer & Powdthaveeb, 2017). Thus, the ability to recover from stress, self-efficacy, and optimism on the one hand and internal and external locus of control on the other could load on different factors.…”
mentioning
confidence: 90%
“…We follow previous papers using LOC from HILDA (e.g. Buddelmeyer and Powdthavee, 2016;Cobb-Clark et al, 2014) and use all seven responses to construct our LOC measure. Respondents were asked the extent to which they agree with seven different statements, with possible responses ranging from 1 (strongly disagree) to 7 (strongly agree):…”
Section: Key Variablesmentioning
confidence: 99%
“…Hence, blaming fate instead of blaming oneself 'outsources' the responsibility of unemployment and may im- prove current individual well-being. LOC is then not only an explaining factor for the ability to cope with negative events (Buddelmeyer and Powdthavee, 2016), but may act as coping channel itself. Adapting ones own belief is then an active strategy to manage unemployment and social desirability.…”
Section: Theoretical Considerationsmentioning
confidence: 99%