THE IMPACT OF PERSONALITY TRAITS ON WAGE GROWTH AND THE GENDER WAGE GAP

Konrad C. Schäfer and Jörg Schwiebert

Bulletin of Economic Research, 2018, vol. 70, issue 1, 20-34

Abstract: This paper considers the impact of personality traits on the change of the gender wage gap. Using data from the German Socioeconomic Panel (SOEP), we first explore how personality traits affect wage growth rates. Then, a decomposition analysis is performed to analyse the dynamic effects of personality traits on the change of the gender wage gap over time. Our empirical results indicate that gender differences in conscientiousness and emotional stability lead to a widening of the wage gap over time. By contrast, gender differences in extraversion lead to a narrowing of the wage gap over time.

Date: 2018
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