Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223715 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13273
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Unhealthy behavior can be extremely costly from a micro- and macroeconomic perspective and exploring the determinants of such behavior is highly important from an economist's point of view. We examine whether locus of control (LOC) can explain alcohol consumption as an important domain of health behavior. LOC measures how much an individual believes that she is in control of the consequences of her own actions for her life's future outcomes. While earlier literature showed that an increasing internal LOC is associated with increased health-conscious behavior in domains such as smoking, exercise or diets, we find that drinking seems to be different. Using German panel data from the Socio-Economic Panel (SOEP) we find a significant positive effect of having an internal LOC on the probability of moderate and regular drinking. We suggest and discuss two likely mechanisms for this relationship and find interesting gender dierences. While social investments play an important role for both men and women, risk perceptions are especially relevant for men.
Subjects: 
locus of control
alcohol consumption
health behavior
risk perception
social investment
JEL: 
I12
D91
Document Type: 
Working Paper

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