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

Author

Listed:
  • 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.

Suggested Citation

  • Stefanie Schurer & Jongsay Yong, 2010. "Personality, Well-being and Heterogeneous Valuations of Income and Work," Melbourne Institute Working Paper Series wp2010n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2010n14
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2010n14.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    random coefficient model; personality traits; heterogeneity; subjective wellbeing; income and work; preferences;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D00 - Microeconomics - - General - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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