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Does it Pay to Be Nice? Personality and Earnings in the United Kingdom

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  • Guido Heineck

Abstract

The author examines the relationship between individuals' personality traits and labor market success in the United Kingdom using data from the British Household Panel Study (BHPS). With longitudinal individuals' earnings information as well as psychological profile data of respondents specifically from the 2005 wave, he is able to ascertain the extent to which basic traits from the Five Factor Personality Inventory–openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism–affect wages. Results indicate a positive relationship between openness to experience and wages, but a negative linear relationship between wages and agreeableness, and for females, between wages and neuroticism. Although there is no convincing evidence for an association between extraversion and earnings, there is a nonlinear gradient for conscientiousness. Moreover, there are no joint effects of personality and tenure. The study does support the suggestion that the associations found are causal.

Suggested Citation

  • Guido Heineck, 2011. "Does it Pay to Be Nice? Personality and Earnings in the United Kingdom," ILR Review, Cornell University, ILR School, vol. 64(5), pages 1020-1038, October.
    • Handle: RePEc:sae:ilrrev:v:64:y:2011:i:5:p:1020-1038
    DOI: 10.1177/001979391106400509
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    References listed on IDEAS

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    1. Guido Heineck, 2005. "Up in the Skies? The Relationship between Body Height and Earnings in Germany," LABOUR, CEIS, vol. 19(3), pages 469-489, September.
    2. Groves, Melissa Osborne, 2005. "How important is your personality? Labor market returns to personality for women in the US and UK," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 827-841, December.
    3. Murnane, Richard J. & Willett, John B. & Braatz, M. Jay & Duhaldeborde, Yves, 2001. "Do different dimensions of male high school students' skills predict labor market success a decade later? Evidence from the NLSY," Economics of Education Review, Elsevier, vol. 20(4), pages 311-320, August.
    4. Merve Cebi, 2007. "Locus of Control and Human Capital Investment Revisited," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).
    5. Semykina, Anastasia & Linz, Susan J., 2007. "Gender differences in personality and earnings: Evidence from Russia," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 387-410, June.
    6. Yona Rubinstein & James J. Heckman, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May.
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