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The economics of global personality diversity

Author

Listed:
  • Paul X. McCarthy
  • Xian Gong
  • Marieth Coetzer
  • Marian-Andrei Rizoiu
  • Margaret L. Kern
  • John A. Johnson
  • Richard Holden
  • Fabian Braesemann

Abstract

This study explores the relationship between personality diversity and national economic performance, introducing the Global Personality Diversity Index (${\Psi}$-GPDI) as a novel metric. Leveraging a dataset of 760,242 individuals across 135 countries, we quantify within-country diversity based on the Big Five personality traits. Our findings reveal that personality diversity accounts for 19.9% of the variance in GDP per capita and provides an additional 2.8% explanatory power beyond institutional quality and immigration, underscoring its unique contribution to economic vitality. Through multi-factor analysis, we demonstrate how personality diversity complements existing economic frameworks, offering actionable insights for policymakers seeking to enhance innovation, productivity, and resilience. This research positions psychological diversity as a critical yet under explored factor in driving economic growth, bridging the fields of psychology and economics.

Suggested Citation

  • Paul X. McCarthy & Xian Gong & Marieth Coetzer & Marian-Andrei Rizoiu & Margaret L. Kern & John A. Johnson & Richard Holden & Fabian Braesemann, 2025. "The economics of global personality diversity," Papers 2503.19388, arXiv.org, revised Mar 2025.
    • Handle: RePEc:arx:papers:2503.19388
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    References listed on IDEAS

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    10. repec:hal:pseose:hal-01304131 is not listed on IDEAS
    11. Paul X. McCarthy & Xian Gong & Fabian Stephany & Fabian Braesemann & Marian-Andrei Rizoiu & Margaret L. Kern, 2023. "The Science of Startups: The Impact of Founder Personalities on Company Success," Papers 2302.07968, arXiv.org.
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