Measuring Self-Control

How significant are individual differences in self-control? Do these differences impact wealth accumulation? From where do they derive? Our survey-based measure of self-control provides insights into all three questions: 1. There are individual differences in self-control not only of a quantitative but also of a qualitative nature. In our sample, standard self-control problems of over-consumption are no more prevalent than are problems of under-consumption. 2. Standard self-control problems do impede wealth accumulation, particularly in liquid form. Problems of under-consumption have the opposite effects. 3. Self-control is linked to “conscientiousness”, a personality trait much studied by psychologists. There is a related link with financial planning. ∗The Vanguard Group (Ameriks), Department of Economics, New York University (Caplin and Leahy), and Department of Psychology, New York University (Tyler). Caplin thanks the Center for Experimental Social Science at New York University and the C.V. Starr Center at NYU for financial support. We would like to thank Xiaohong Chen, Douglas Fore, Faruk Gul, Guido Imbens, David Laibson, Julio Rotemberg, Ariel Rubinstein, and Yaacov Trope for helpful discussions. We gratefully acknowledge financial support for our survey provided by the TIAA-CREF Institute. All opinions expressed herein are those of the authors alone, and not necessarily those of The Vanguard Group, TIAA-CREF or any of either organization’s employees, trustees, or affiliates.