Abstract
Predicting worker’s effort is important in many different areas, but is often
difficult. Using a laboratory experiment, we test the hypothesis that confidence,
i.e. the person-specific beliefs about her abilities, can be used as a generic proxy to predict future effort provision. We measure confidence in the domain of financial knowledge in three different ways (self-assessed knowledge, probability-based confidence, and incentive-compatible confidence) and find a positive relation with actual effort provision in an unrelated domain. Additional analysis shows that the findings are independent of a person’s traits such as gender, age, and nationality.
difficult. Using a laboratory experiment, we test the hypothesis that confidence,
i.e. the person-specific beliefs about her abilities, can be used as a generic proxy to predict future effort provision. We measure confidence in the domain of financial knowledge in three different ways (self-assessed knowledge, probability-based confidence, and incentive-compatible confidence) and find a positive relation with actual effort provision in an unrelated domain. Additional analysis shows that the findings are independent of a person’s traits such as gender, age, and nationality.
Original language | English |
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Place of Publication | Tilburg |
Publisher | CentER, Center for Economic Research |
Number of pages | 29 |
Volume | 2015-055 |
Publication status | Published - 23 Nov 2015 |
Publication series
Name | CentER Discussion Paper |
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Volume | 2015-055 |
Keywords
- Real-effort task
- financial literacy
- overconfidence