Is personality related to permanent earnings? : Evidence using a twin design
Abstract
Using twin survey combined with register-based panel data on labor market outcomes, the authors examine the association between personality characteristics and long-term earnings among prime working-age individuals. The long-term earnings were measured over the 1990–2008 period. The sample contains 4,642 twin pairs, of which 53% are females. In contrast to previous studies, this paper uses the within-twin dimension of the data to control for shared family background and confounding genetic factors. The results suggest that unobserved genetic differences may introduce omitted variable bias in standard ordinary least square results. After controlling for shared environment and genetic background, the authors find that a facet of extraversion (activity) is related to higher (β = 0.046), and neuroticism is related to lower (β = -0.060) permanent earnings in the labor market. The lower earnings of more neurotic individuals are likely explained by the weaker attachment in the labor market.
Main Authors
Format
Articles
Research article
Published
2018
Series
Subjects
Publication in research information system
Publisher
Elsevier
The permanent address of the publication
https://urn.fi/URN:NBN:fi:jyu-201802211554Käytä tätä linkitykseen.
Review status
Peer reviewed
ISSN
0167-4870
DOI
https://doi.org/10.1016/j.joep.2018.01.001
Language
English
Published in
Journal of Economic Psychology
Citation
- Maczulskij, T., & Viinikainen, J. (2018). Is personality related to permanent earnings? : Evidence using a twin design. Journal of Economic Psychology, 64(February), 116-129. https://doi.org/10.1016/j.joep.2018.01.001
Copyright© 2018 Elsevier B.V. This is a final draft version of an article whose final and definitive form has been published by Elsevier B.V. Published in this repository with the kind permission of the publisher.