Personality matters: Personality traits in the Level of Living Survey and their relation to wage differences, gender and age
preprintposted on 26.02.2021, 12:15 by Josefine C. Matysiak
The determinants of individuals’ allocations in the labor market usually are modelled as depending on educational attainment, socioeconomic background, age and sex. But a surprisingly large portion of the variance in e.g. earnings cannot be explained by these traditional variables (Groves, 2005, p.828). Especially in psychology there is a growing number of papers about the effect of personality traits on the educational and occupational outcome: the wage. The project "Stratification processes in the labor market" carried out by Erik Bihagen, Magnus Nermo, Charlotta Stern and Yvonne Åberg at the University of Stockholm will be the first to combine the effects of personality measures, cognitive ability, and the respondents’ social networks on stratification processes in the labor market in one study. Therefore, they analyze the effect of personality traits and cognitive abilities in late adolescence on labor market outcomes, the association between personalty traits and the gender wage gap and the impact of kinship and peer networks on the recruitment to top labor market positions. The purpose of this report is to give an overview of the personality variables as estimated by LNU: How are they measured? Are they changing by age? And are there differences according to gender? The report also provides first results about the effect of personality on wage and on the gender wage gap.