Impact of self-control on individual income: evidence from China

Abstract

This article examines the relationship between individual income and self-control by employing the data available from the China Labor-force Dynamics Survey 2014. We use the two-stage least square method (2SLS) and mediating/moderating effects to estimate the relationship between income and self-control. Results show that self-control impacts individual income both positively and significantly. Age and gender play moderate roles, while education plays a mediating role in the progress of self-control to impact individual income. Robustness analyses are conducted using an IV-quantile regression model, a plausible exogenous instrument, and combining different categories. Findings are consistent across different models and assumptions. This study indicates that an improvement in individual self-control is conducive to increasing individual income.