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The Role of Psychological Traits for the Gender Gap in Full-time Employment and Wages: Evidence from Germany

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Nils Braakmann

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Abstract

This paper shows that differences in various non-cognitive traits, specifically the ¿big five¿, positive and negative reciprocity, locus of control and risk aversion, contribute to gender inequalities in wages and employment. Using the 2004 and 2005 waves of the German Socio-Economic Panel, evidence from regression and decomposition techniques suggests that gender differences in psychological traits are more important for inequalities in wages than in employment. Differences in the ¿big five¿, in particular in agreeableness, conscientiousness and neurocitism matter for both wages and employment. For the latter, the results also show a large effect of differences in external locus of control.

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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number 162.

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Length: 27 p.
Date of creation: 2009
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Handle: RePEc:diw:diwsop:diw_sp162

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Related research
Keywords: Gender wage gap; non-cognitive traits; decomposition;

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Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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