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Personality, Well-being and Heterogeneous Valuations of Income and Work

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  • Stefanie Schurer

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Jongsay Yong

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

Using Australian longitudinal data and a random coefficient approach, this paper investigates whether personality traits explain the heterogeneity in these valuations. We find that differences in subjective well-being are driven by Emotional Stability. Women's valuations of income depend on their score of Openness to Experience and men significantly differ in their valuations of work across the spectrum of Emotional Stability and Conscientiousness. Our study directly tests predictions of Self-Determination Theory and contributes to the debate on the assumption of homogeneous agents in economic theory.

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2010n14.

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Length: 61 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:iae:iaewps:wp2010n14

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
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Web page: http://www.melbourneinstitute.com/
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Keywords: random coefficient model; personality traits; heterogeneity; subjective wellbeing; income and work; preferences;

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