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Personality and Labour Market Income: Evidence from Longitudinal Data

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  • Jutta Viinikainen
  • Katja Kokko
  • Lea Pulkkinen
  • Jaakko Pehkonen

Abstract

This study contributes to the literature on how personality is rewarded in the labour market by examining the relationship between personality and labour market income. Our results suggest that adulthood extraversion is positively associated with income when education, work experience, and unemployment history, measured prospectively from longitudinal data, are controlled for. In addition, childhood constructiveness indicating active and well‐controlled behaviour has a positive association with income in adulthood.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:labour:v:24:y:2010:i:2:p:201-220
    DOI: 10.1111/j.1467-9914.2010.00477.x
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    Cited by:

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    2. Alita Nandi & Cheti Nicoletti, 2014. "Explaining personality pay gaps in the UK," Applied Economics, Taylor & Francis Journals, vol. 46(26), pages 3131-3150, September.
    3. Tyler Hansen & Jared Rand, 2016. "Self-Employed Tutor Pricing Model," UMASS Amherst Economics Working Papers 2016-11, University of Massachusetts Amherst, Department of Economics.
    4. Mosca, Irene & McCrory, Cathal, 2016. "Personality and wealth accumulation among older couples: Do dispositional characteristics pay dividends?," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 1-19.
    5. Alderotti, Giammarco & Rapallini, Chiara & Traverso, Silvio, 2023. "The Big Five personality traits and earnings: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 94(C).
    6. Maria Cubel & Ana Nuevo‐Chiquero & Santiago Sanchez‐Pages & Marian Vidal‐Fernandez, 2016. "Do Personality Traits Affect Productivity? Evidence from the Laboratory," Economic Journal, Royal Economic Society, vol. 0(592), pages 654-681, May.
    7. Olamide Olajide & Sarah Asebedo & Donald Lacombe & Todd Little, 2023. "Perception versus the reality of financial situation: The role of personality traits in the United States," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(3), pages 1523-1541, July.
    8. Kathryn Duckworth & Greg J. Duncan & Katja Kokko & Anna-Liisa Lyyra & Molly Metzger & Sharon Simonton, 2012. "The relative importance of adolescent skills and behaviors for adult earnings: A cross-national study," DoQSS Working Papers 12-03, Quantitative Social Science - UCL Social Research Institute, University College London.
    9. Terhi Maczulskij & Jutta Viinikainen, 2015. "Personality characteristics and long-term labor market outcomes: Evidence from twins," Working Papers 299, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    10. Susanne M. Syrén & Katja Kokko & Lea Pulkkinen & Jaakko Pehkonen, 2020. "Income and Mental Well-Being: Personality Traits as Moderators," Journal of Happiness Studies, Springer, vol. 21(2), pages 547-571, February.
    11. Maksimova, Mariia, 2019. "The return to non-cognitive skills on the Russian labor market," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 53, pages 55-72.
    12. Cubel, Maria & Nuevo-Chiquero, Ana & Sanchez-Pages, Santiago & Vidal-Fernandez, Marian, 2014. "Do Personality Traits Affect Productivity? Evidence from the Lab," IZA Discussion Papers 8308, Institute of Labor Economics (IZA).
    13. Robert Wells & Roger Ham & P. N. (Raja) Junankar, 2016. "An examination of personality in occupational outcomes: antagonistic managers, careless workers and extraverted salespeople," Applied Economics, Taylor & Francis Journals, vol. 48(7), pages 636-651, February.
    14. Roberts Brent & Jackson Joshua J & Duckworth Angela L & Von Culin Katherine, 2011. "Personality Measurement and Assessment in Large Panel Surveys," Forum for Health Economics & Policy, De Gruyter, vol. 14(2), pages 1-34, April.
    15. Laible, Marie-Christine & Anger, Silke & Baumann, Martina, 2020. "Personality Traits and Further Training," IAB-Discussion Paper 202034, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Joanne Kathryn Lindley, 2018. "Are There Unexplained Financial Rewards for the Snakes in Suits? A Labour Market Analysis of the Dark Triad of Personality," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 770-797, December.
    17. Josten, Cecily & Lordan, Grace, 2024. "Who makes it to the top? Differential rewards to personality across gender and occupation in the UK," LSE Research Online Documents on Economics 121448, London School of Economics and Political Science, LSE Library.
    18. Gavoille, Nicolas & Hazans, Mihails, 2022. "Personality traits, remote work and productivity," GLO Discussion Paper Series 1145, Global Labor Organization (GLO).
    19. Brenzel, Hanna & Laible, Marie-Christine, 2016. "Does personality matter? : the impact of the big five on the migrant and gender wage gaps," IAB-Discussion Paper 201626, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    20. Leonora Risse & Lisa Farrell & Tim R L Fry, 2018. "Personality and pay: do gender gaps in confidence explain gender gaps in wages?," Oxford Economic Papers, Oxford University Press, vol. 70(4), pages 919-949.
    21. Costa-Font, Joan & García-Hombrados, Jorge & Nicińska, Anna, 2024. "Long-lasting effects of indoctrination in school: Evidence from the People’s Republic of Poland," European Economic Review, Elsevier, vol. 161(C).
    22. Sarah D. Asebedo & Taufiq Hasan Quadria & Blake T. Gray & Yi Liu, 2022. "The Psychology of COVID-19 Economic Impact Payment Use," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 239-260, June.
    23. Maczulskij, Terhi & Viinikainen, Jutta, 2018. "Is personality related to permanent earnings? Evidence using a twin design," Journal of Economic Psychology, Elsevier, vol. 64(C), pages 116-129.

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