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Explaining personality pay gaps in the UK

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  • Nandi, Alita
  • Nicoletti, Cheti

Abstract

Using the British Household Panel Survey we examine how the Big Five personality traits – openness to experience, conscientiousness, extroversion, agreeableness, and neuroticism – affect wages. We estimate mean and quantile pay gaps between people with low and high levels of each of the Big Five, and decompose these pay gaps in the part explained by differences in workers’ characteristics and in the residual unexplained part. We find that openness to experience is the most relevant personality trait followed by neuroticism, agreeableness and extroversion. Openness and extroversion are rewarded while agreeableness and neuroticism are penalized.

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File URL: https://www.iser.essex.ac.uk/publications/working-papers/iser/2009-22.pdf
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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2009-22.

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Date of creation: 01 Jul 2009
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Publication status: published
Handle: RePEc:ese:iserwp:2009-22

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Phone: 44-1206-872957
Fax: 44-1206-873151
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web: https://www.iser.essex.ac.uk/publications/

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Cited by:
  1. repec:hal:wpaper:halshs-00564821 is not listed on IDEAS
  2. Dusanee Kesavayuth & Robert Rosenman & Vasileios Zikos, 2013. "Does Personality Affect how People Perceive their Health?," Working Papers, School of Economic Sciences, Washington State University 2013-13, School of Economic Sciences, Washington State University.
  3. Javier G. Polavieja & Lucinda Platt, 2010. "Girls like pink: Explaining sex-typed occupational aspirations amongst young children," Working Papers, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales 2010-19, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  4. Böckerman, Petri & Bryson, Alex & Viinikainen, Jutta & Hakulinen, Christian & Pulkki-Raback, Laura & Raitakari, Olli, 2014. "Biomarkers and Long-term Labour Market Outcomes: The Case of Creatine," IZA Discussion Papers 8029, Institute for the Study of Labor (IZA).
  5. Brown, Sarah & Taylor, Karl, 2011. "Household Finances and the 'Big Five' Personality Traits," IZA Discussion Papers 6191, Institute for the Study of Labor (IZA).
  6. Lundberg, Shelly, 2013. "The College Type: Personality and Educational Inequality," IZA Discussion Papers 7305, Institute for the Study of Labor (IZA).
  7. Shelly Lundberg, 2011. "Psychology and Family Economics," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, Verein für Socialpolitik, vol. 12(s1), pages 66-81, 05.
  8. Lundberg, Shelly, 2013. "Educational Inequality and the Returns to Skills," IZA Discussion Papers 7595, Institute for the Study of Labor (IZA).

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