Confidence and career choices: An experiment
Research output: Contribution to journal › Journal article › Research › peer-review
Documents
- Fulltext
Final published version, 331 KB, PDF document
Confidence is often seen as an important determinant of success. However, empirical evidence regarding the causal effect of confidence on choices is sparse. Using a stylized laboratory experiment, we examine the effect of an increase in confidence on two important labor market choices: (i) the amount of ability-contingent earnings risk to take on, and (ii) the subsequent effort choice. We find that increased confidence leads subjects to take on more ability-contingent earnings risk. However, effort levels are unaffected. Overall, the upward shift in confidence is detrimental for low-ability workers as a result of high baseline levels of confidence.
Original language | English |
---|---|
Journal | The Scandinavian Journal of Economics |
Volume | 124 |
Issue number | 1 |
Pages (from-to) | 35-68 |
ISSN | 0347-0520 |
DOIs | |
Publication status | Published - 2022 |
- Faculty of Social Sciences
Research areas
Number of downloads are based on statistics from Google Scholar and www.ku.dk
No data available
ID: 291301729