Working Paper: NBER ID: w16328
Authors: Ron Kaniel; Cade Massey; David T. Robinson
Abstract: Dispositional optimism is a personality trait associated with individuals who believe, either rightly or wrongly, that in general good things tend to happen to them more often than bad things. Using a novel longitudinal data set that tracks the job search performance of MBA students, we show that dispositional optimists experience significantly better job search outcomes than pessimists with similar skills. During the job search process, they spend less effort searching and are offered jobs more quickly. They are choosier and are more likely to be promoted than others. Although we find optimists are more charismatic and are perceived by others to be more likely to succeed, these factors alone do not explain away the findings. Most of the effect of optimism on economic outcomes stems from the part that is not readily observed by one's peers.
Keywords: Dispositional Optimism; Labor Markets; Job Search; MBA Students
JEL Codes: J24; M51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Dispositional optimism (D15) | Job search outcomes (J68) |
| Dispositional optimism (D15) | Job offers (M51) |
| Dispositional optimism (D15) | Promotion speed (J62) |
| Dispositional optimism (D15) | Job search intensity (J29) |
| Job search intensity (J29) | Job search efficiency (J68) |
| Dispositional optimism (D15) | Job offer quality acceptance (M51) |