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The relationship between economic preferences and psychological personality measures

Author

Listed:
  • Becker Anke
  • Deckers Thomas
  • Dohmen Thomas
  • Falk Armin
  • Kosse Fabian

    (ROA rm)

Abstract

Although both economists and psychologists seek to identify determinants ofheterogeneity in behavior, they use different concepts to capture them. In this reviewwe first analyze the extent to which economic preferences and psychological conceptsof personality - such as the Big Five and locus of control - are related. We analyze datafrom incentivized laboratory experiments and representative samples and find onlylow degrees of association between economic preferences and personality. We thenregress life outcomes - such as labor market success, health status and life satisfaction- simultaneously on preference and personality measures. The analysis reveals that thetwo concepts are rather complementary when it comes to explaining heterogeneity inimportant life outcomes and behavior.

Suggested Citation

  • Becker Anke & Deckers Thomas & Dohmen Thomas & Falk Armin & Kosse Fabian, 2012. "The relationship between economic preferences and psychological personality measures," ROA Research Memorandum 012, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    • Handle: RePEc:unm:umaror:2012012
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    References listed on IDEAS

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    More about this item

    Keywords

    labour economics ;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • I00 - Health, Education, and Welfare - - General - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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