Confidence and career choices: An experiment
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Confidence and career choices : An experiment. / Barron, Kai; Gravert, Christina.
I: The Scandinavian Journal of Economics, Bind 124, Nr. 1, 2022, s. 35-68.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Confidence and career choices
T2 - An experiment
AU - Barron, Kai
AU - Gravert, Christina
PY - 2022
Y1 - 2022
N2 - 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.
AB - 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.
KW - Faculty of Social Sciences
KW - beliefs
KW - career choices
KW - experiment
KW - overconfidence
KW - real effort
U2 - 10.1111/sjoe.12444
DO - 10.1111/sjoe.12444
M3 - Journal article
VL - 124
SP - 35
EP - 68
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
SN - 0347-0520
IS - 1
ER -
ID: 291301729