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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.

Suggested Citation

  • Nandi, Alita & Nicoletti, Cheti, 2009. "Explaining personality pay gaps in the UK," ISER Working Paper Series 2009-22, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2009-22
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    Cited by:

    1. Matthias Collischon, 2017. "The Returns to Personality Traits across the Wage Distribution," SOEPpapers on Multidisciplinary Panel Data Research 921, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Böckerman, Petri & Bryson, Alex & Viinikainen, Jutta & Hakulinen, Christian & Pulkki-Råback, Laura & Raitakari, Olli & Pehkonen, Jaakko, 2017. "Biomarkers and long-term labour market outcomes: The case of creatine," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 259-274.
    3. Andrew E. Clark & Yannis Georgellis, 2010. "Back to baseline in Britain: Adaptation in the BHPS," Working Papers halshs-00564821, HAL.
    4. Cornelius A. Rietveld & Petri Böckerman & Jutta Viinikainen & Alex Bryson & Olli Raitakari & Jaakko Pehkonen, 2016. "Creatine and entrepreneurship," Journal of Bioeconomics, Springer, vol. 18(1), pages 53-64, April.
    5. Brown, Sarah & Taylor, Karl, 2014. "Household finances and the ‘Big Five’ personality traits," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 197-212.
    6. Dusanee Kesavayuth & Robert Rosenman & Vasileios Zikos, 2013. "Does Personality Affect how People Perceive their Health?," Working Papers 2013-13, School of Economic Sciences, Washington State University.
    7. Lundberg, Shelly, 2013. "Educational Inequality and the Returns to Skills," IZA Discussion Papers 7595, Institute for the Study of Labor (IZA).
    8. Jutta Viinikainen & Katja Kokko & Lea Pulkkinen & Jaakko Pehkonen, 2010. "Personality and Labour Market Income: Evidence from Longitudinal Data," LABOUR, CEIS, vol. 24(2), pages 201-220, June.
    9. repec:eee:joepsy:v:64:y:2018:i:c:p:116-129 is not listed on IDEAS
    10. Uhrig, S.C. Noah & Watson, Nicole, 2014. "The impact of measurement error on wage decompositions: evidence from the British Household Panel Survey and the Household, Income and Labour Dynamics in Australia Survey," ISER Working Paper Series 2014-24, Institute for Social and Economic Research.
    11. Shelly Lundberg, 2011. "Psychology and Family Economics," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 66-81, May.
    12. Javier G. Polavieja & Lucinda Platt, 2010. "Girls like pink: Explaining sex-typed occupational aspirations amongst young children," Working Papers 2010-19, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    13. Shelly Lundberg, 2013. "The College Type: Personality and Educational Inequality," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 421-441.
    14. Petri Bockerman & Alex Bryson & Christian Hakulinen & Jaakko Pehkonen & Laura Pulkki-Raback & Olli Raitakari & Jutta Viinikainen, 2014. "Biomarkers and Long-term Market Outcomes: The Case of Creatine," CEP Discussion Papers dp1279, Centre for Economic Performance, LSE.
    15. Shelly Lundberg, 2017. "Non-Cognitive Skills as Human Capital," NBER Chapters,in: Education, Skills, and Technical Change: Implications for Future US GDP Growth National Bureau of Economic Research, Inc.

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