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Personality and income in Mexico: Supervisor assessments vs. self-assessments

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  • Palifka, Bonnie J.
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    Abstract

    The effects of personality on earnings are still relatively unknown. Using a unique database, I examine the effects of eleven personality traits on compensation among college graduates in Mexico. With matched employee-supervisor surveys, I show that self-assessments and supervisor assessments of the same traits differ, and estimate the marginal effects of each on compensation. Consistent with previous studies on personality and earnings, regressions using self-assessments reveal Motivation traits to be the strongest predictors of compensation. Using supervisor assessments, however, I find that Openness to Experience has stronger impacts on compensation than does Motivation. The inclusion of supervisor assessments provides important information about how personality influences income directly, a unique feature of this essay.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Psychology.

    Volume (Year): 30 (2009)
    Issue (Month): 1 (February)
    Pages: 92-106

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    Handle: RePEc:eee:joepsy:v:30:y:2009:i:1:p:92-106

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    Web page: http://www.elsevier.com/locate/joep

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    Keywords: Personality Income Self-assessed traits Mexico;

    References

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    1. Thomas N. Daymonti & Paul J. Andrisani, 1984. "Job Preferences, College Major, and the Gender Gap in Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 408-428.
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    3. Semykina, Anastasia & Linz, Susan J., 2007. "Gender differences in personality and earnings: Evidence from Russia," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 387-410, June.
    4. James E. Long, 1995. "The effects of tastes and motivation on individual income," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 338-351, January.
    5. B. F. Kiker & C. M. Condon, 1981. "The Influence of Socioeconomic Background on the Earnings of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 16(1), pages 94-105.
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    7. Elliott, Robert F. & Sandy, Robert, 1998. "Adam Smith may have been right after all: A new approach to the analysis of compensating differentials," Economics Letters, Elsevier, vol. 59(1), pages 127-131, April.
    8. Randall K. Filer, 1983. "Sexual Differences in Earnings: The Role of Individual Personalities and Tastes," Journal of Human Resources, University of Wisconsin Press, vol. 18(1), pages 82-99.
    9. Groves, Melissa Osborne, 2005. "How important is your personality? Labor market returns to personality for women in the US and UK," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 827-841, December.
    10. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Western Economic Association International, vol. 35(4), pages 815-29, October.
    11. Wise, David A, 1975. "Academic Achievement and Job Performance," American Economic Review, American Economic Association, vol. 65(3), pages 350-66, June.
    12. O'Connell, Michael & Sheikh, Hammad, 2007. "Growth in career earnings and the role of achievement-related traits," Journal of Economic Psychology, Elsevier, vol. 28(5), pages 590-605, October.
    13. Bartlett, Robin L & Miller, Timothy I, 1985. "Executive Compensation: Female Executives and Networking," American Economic Review, American Economic Association, vol. 75(2), pages 266-70, May.
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