The Role of Locus of Control in Adulthood Outcomes: Evidence from Australian Twins

The Role of Locus of Control in Adulthood Outcomes: Evidence from Australian Twins

Journal of Economic Behavior and Organization

Sen Xue, Michael Kidd, Anh T. Le, Kathy Kirk, Nick Martin

Abstract

We study the impact of locus of control on adulthood outcomes. We address the issue of omitted shared family background and genetic factors using data on monozygotic (MZ) and dizygotic (DZ) twins from Australia. Estimation results are highly sensitive to controlling adequately for shared background and genes. While the associations between locus of control and most adulthood outcomes are statistically significant and similar across OLS and DZ twins fixed effect models, they are insignificant in the MZ twins fixed effect models. Two important exceptions emerge. Locus of control remains significantly associated with regular physical exercise and occupational rank, in line with the previous literature. We discuss the implications of our findings.

Keywords: Locus of control; Twin studies; Socioeconomic outcomes

JEL classification: J24; J21; J31