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Psychological Traits and Earnings Differences Among Men: A Study of Second - Generation Immigrants in Sweden


  • Hanes, Niklas

    () (Department of Economics, Umeå University)

  • Norlin, Erik

    () (Department of Economics, Umeå University)


The purpose of this study is to analyse the impact of psychological traits on earnings differentials between second-generation immigrants and individuals with native-born parents. The study is based on the cohort of men born in 1973 and residing in Sweden in December 1990. In this paper we use an indicator of psychological ability measured in connection to the military enrolment test in Sweden. The results show that the measure of psychological traits is an important determinant of earnings at the age of 30. Using an Oaxaca-Blinder decomposition we find that the earnings differences between second-generation immigrants and individuals with native born parents to a large part are explained by differences in endowments of psychological traits.

Suggested Citation

  • Hanes, Niklas & Norlin, Erik, 2008. "Psychological Traits and Earnings Differences Among Men: A Study of Second - Generation Immigrants in Sweden," Umeå Economic Studies 741, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0741

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    Earnings differentials; psychological traits; military enrolment test; secondgeneration immigrants; Oaxaca-Blinder decomposition;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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