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Personality Traits, Intra-household Allocation and the Gender Wage Gap

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  • Christopher J. Flinn
  • Petra E. Todd
  • Weilong Zhang

Abstract

A model of how personality traits affect household time and resource allocation decisions and wages is developed and estimated. In the model, households choose between two modes of behavior: cooperative or noncooperative. Spouses receive wage offers and allocate time to supplying labor market hours and to producing a public good. Personality traits, measured by the so-called Big Five traits, can affect household bargaining weights and wage offers. Model parameters are estimated by Simulated Method of Moments using the Household Income and Labor Dynamics in Australia (HILDA) data. Personality traits are found to be important determinants of household bargaining weights and of wage offers and to have substantial implications for understanding the sources of gender wage disparities.

Suggested Citation

  • Christopher J. Flinn & Petra E. Todd & Weilong Zhang, 2017. "Personality Traits, Intra-household Allocation and the Gender Wage Gap," Carlo Alberto Notebooks 495, Collegio Carlo Alberto.
    • Handle: RePEc:cca:wpaper:495
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    References listed on IDEAS

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    More about this item

    Keywords

    gender wage differentials; personality and economic outcomes; household bargaining; time allocations;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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