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Psychological traits and wages in the Czech Republic

Author

Listed:
  • Pavlína Vydrželová
  • Jiří Balcar
  • Lenka Johnson Filipová

Abstract

Psychological traits have received significant attention in labour market research in recent decades. Unfortunately, empirical evidence remains limited for some psychological traits and their interactions. To address this gap, we conduct a representative survey of employees, assessing competitiveness, persistence, and risk tolerance using single-item scales. This comprehensive study sheds light on the connection between these traits and wages. Our results confirm that individuals possessing these traits tend to earn higher wages, even when we account for indirect factors, such as higher educational attainment and better job positions. It also suggests that competitiveness and risk tolerance are particularly valuable for individuals with middle and high incomes, while persistence is valuable for those with low and middle incomes. These findings support the systematic development of competitiveness, persistence, and risk tolerance through education and sporting activities.

Suggested Citation

  • Pavlína Vydrželová & Jiří Balcar & Lenka Johnson Filipová, 2024. "Psychological traits and wages in the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2024(1), pages 79-102.
    • Handle: RePEc:prg:jnlpep:v:2024:y:2024:i:1:id:853:p:79-102
    DOI: 10.18267/j.pep.853
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    References listed on IDEAS

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    1. Thomas Dohmen & Armin Falk, 2011. "Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender," American Economic Review, American Economic Association, vol. 101(2), pages 556-590, April.
    2. Jiří Balcar & Lenka Janíčková & Lenka Filipová, 2014. "What General Competencies Are Required from the Czech Labour Force?," Prague Economic Papers, Prague University of Economics and Business, vol. 2014(2), pages 250-265.
    3. Fairlie, Robert W. & Holleran, William, 2012. "Entrepreneurship training, risk aversion and other personality traits: Evidence from a random experiment," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 366-378.
    4. Murnane, Richard J & Willett, John B & Levy, Frank, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 251-266, May.
    5. Richard J. Murnane & John B. Willett & Yves Duhaldeborde & John H. Tyler, 2000. "How important are the cognitive skills of teenagers in predicting subsequent earnings?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(4), pages 547-568.
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    More about this item

    Keywords

    competitiveness; persistence; risk tolerance; wage; psychological traits;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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