The effects of personality on earnings

Nyhus, Ellen K.; Pons, Empar

doi:10.1016/j.joep.2004.07.001

Cited by 419 publications

(452 citation statements)

References 29 publications

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“…Importantly, however, these studies find that effort-driven effects tend to be concentrated in the lower third of the distribution (Heckman, Malofeeva, Pinto, and Savelyev 2010). As we will discuss later, we find effects 27 While it may seem puzzling given the meta-studies of Barrick and Mount (1991)and Salgado (1997) that we do not find a positive association between conscientiousness and wages, both Mueller and Plug (2006) and Nyhus and Pons (2005) find similar results to ours after adjusting for IQ and other socio-economic characteristics.…”

Section: Qualitysupporting

confidence: 72%

“…The entry condition is v ≤ ψ v, w,ρ, ρ, c 1 , c 2 . 40 We now state, Proposition 4 If ρw > c 1 we have an equilibrium with positive entry for all types v ≤ v,wherev satisfiesv = ψ (v), and wherev increases in w.…”

Section: Theorymentioning

confidence: 99%

“…This is equivalent to the product of the size of the applicant pool and the conversion rate. We can now state, Proposition 5 a) The measure of recruited candidates in our model, and the labor supplied to the firm in equilibrium, can be written as the product F (v) γ (w,v) (the applicant pool size 40 The expected value of attending the interview ψ v, w,ρ, ρ, c 1 , c 2 is,…”

Section: Theorymentioning

confidence: 99%

See 2 more Smart Citations

Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service*

Bó¹,

Finan²,

Rossi³

2013

The Quarterly Journal of Economics

369

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We study a recent recruitment drive for public sector positions in Mexico. Different salaries were announced randomly across recruitment sites, and job offers were subsequently randomized. Screening relied on exams designed to measure applicants' intellectual ability, personality, and motivation. This allows the first experimental estimates of (i) the role of financial incentives in attracting a larger and more qualified pool of applicants, (ii) the elasticity of the labor supply facing the employer, and (iii) the role of job attributes (distance, attractiveness of the municipal environment) in helping fill vacancies, as well as the role of wages in helping fill positions in less attractive municipalities. A theoretical model guides each stage of the empirical inquiry. We find that higher wages attract more able applicants as measured by their IQ, personality, and proclivity towards public sector work -i.e., we find no evidence of adverse selection effects on motivation; higher wage offers also increased acceptance rates, implying a labor supply elasticity of around 2 and some degree of monopsony power. Distance and worse municipal characteristics strongly decrease acceptance rates but higher wages help bridge the recruitment gap in worse municipalities.

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Section: Qualitysupporting

confidence: 72%

Section: Theorymentioning

confidence: 99%

Section: Theorymentioning

confidence: 99%

See 1 more Smart Citation

Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service*

Bó¹,

Finan²,

Rossi³

2013

The Quarterly Journal of Economics

369

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“…Unemployment may also have distinct personality implications for men and women owing to variability in thinking, feeling, and behaving following the event. Different personality traits are valued in the workplace for men and women; for example, agreeableness is likely to be penalized in men but rewarded in women (Mueller & Plug, 2006;Nyhus & Pons, 2005). Thus, to the extent that individuals develop certain personality traits to achieve greater workplace success, the absence of work may differentially dis-incentivize behavior patterns in the two genders.…”

Section: H3mentioning

confidence: 99%

Personality change following unemployment.

Boyce

Wood

Daly

et al. 2015

Journal of Applied Psychology

179

121

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Unemployment has a strongly negative influence on well-being, but it is unclear whether it also alters basic personality traits. Whether personality changes arise through natural maturation processes or contextual/environmental factors is still a matter of debate. Unemployment, a relatively unexpected and commonly occurring life event, may shed light on the relevance of context for personality change. We examined, using a latent change model, the influence of unemployment on the five-factor model of personality in a sample of 6,769 German adults, who completed personality measures at 2 time points 4 years apart. All participants were employed at the first time point, and a subset became unemployed over the course of the study. By the second time point, participants had either remained in employment, been unemployed from 1 to 4 years, or had experienced some unemployment but become reemployed. Compared with those who had remained in employment, unemployed men and women experienced significant patterns of change in their mean levels of agreeableness, conscientiousness, and openness, whereas reemployed individuals experienced limited change. The results indicate that unemployment has wider psychological implications than previously thought. In addition, the results are consistent with the view that personality changes as a function of contextual and environmental factors.

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“…Previous research has shown that neuroticism and (to some extent) agreeableness have a negative effect on earnings and job performance (see e.g. Nyhus and Pons (2005) and Borghans et al (2008) for surveys). We are able to replicate this relationship with our "all executive" sample.…”

Section: Selection On Unobservablesmentioning

confidence: 99%

The politicians’ wage gap: insights from German members of parliament

2012

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Using a unique dataset of German members of parliament (MPs) this paper analyzes the politicians' wage gap (PWG). After controlling for observable characteristics as well as accounting for election probabilities and campaigning costs, we find a positive income premium for MPs which is statistically and economically significant. Our results are consistent with the citizen candidate model: The PWG amounts to 35-65% when comparing MPs to citizens in an executive position. However, it shrinks to zero when restricting the control group to top-level executives. This suggests that German politicians do not receive excessive pay when compared to senior executives.JEL Classification: D72, H11, H83, J31, J45

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The effects of personality on earnings

Cited by 419 publications

References 29 publications

Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service*

Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service*

Personality change following unemployment.

The politicians’ wage gap: insights from German members of parliament

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