Optimal level of control exists
There is also evidence that locus of control is related to job performance (e.g., Judge and Bono 2001). Spector (1982) reviews a number of studies and concludes that "internals do perform better than externals," but only if they perceive that "effort will lead to valued rewards" (p.489). Although internals are likely to have a greater expectation that performance will result in a reward, they may not, in fact, value the reward, they may not, in fact, value the reward, leading their performance to be not better than that of their external co-workers.
The way in which those with an internal locus of control approach their jobs yields important insights into why locus of control is linked to so many labor market outcomes. Spector (1982), for example, notes that "not only do internals perceive greater control, but they will actually seek out situations in which control is possible" (p. 483)
Optimal incentive contacts
Given the conceptual links between self-control, motivation, and locus of control, it is illustrative to consider what insights this emerging literature has to offer about the relationship between locus of control and labor market success.
Bowles et al. (2001) view and internal locus of control as a type of incentive-enhancing preference that leads internal workers to work harder, ceteris paribus. More fatalistic workers, i.e., those with an external locus of control, on the other hand, believe that their own work effort has less effect on the probability of losing their jobs.
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