Overestimating Oneself and Overlooking the Law: Psychological Supports for Employment at Will

This article studies the hypotheses that people tend to underrate other people's work motivation and skills relative to their own, and further tend to be unaware of the legal status of employment at will in contemporary U.S. law. The theoretical part of the article describes psychological bases for the hypothesized tendencies and explains how they can be expected to foster acquiescence to employment at will and high employment insecurity. The empirical portion of the article describes and discusses a survey of M.B.A. students that probed their knowledge of and attitudes toward U.S. employment law, along with their attitudes toward employment insecurity and work motivation. Consistent with the hypotheses, the study found widespread lack of knowledge about the legal status of employment at will, as well as a tendency toward overrating one's own work motivation relative to others and a tendency toward taking higher risks of termination when they were presented as controllable on an individual, though not a group, basis.