Personality and pay: Do gender gaps in confidence explain gender gaps in wages?

Leonora Risse; Lisa Farrell; Tim R.L. Fry

doi:10.1093/oep/gpy021

Personality and pay: Do gender gaps in confidence explain gender gaps in wages?

Leonora Risse, Lisa Farrell, Tim R.L. Fry

Research output: Contribution to journal › Article › peer-review

24 Citations (Scopus)

Abstract

This study explores whether gender patterns in personality traits contribute to the gender gap in hourly wage rates, focusing on traits that reflect an individual's confidence to take on a challenge. To capture confidence, we use a psychological measurement known as Achievement Motivation, which is dually comprised of 'hope for success' and 'fear of failure'. This personality dimension is examined in addition to the Big Five personality traits and Locus of Control (LOC). Using 2013 wage data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, our Oaxaca-Blinder decomposition model reveals that men's stronger hope for success, lower fear of failure and lower agreeableness contribute to the gender wage gap, while women's higher level of conscientiousness is the only trait that serves to narrow it.

Original language	English
Pages (from-to)	919-949
Number of pages	31
Journal	Oxford Economic Papers
Volume	70
Issue number	4
DOIs	https://doi.org/10.1093/oep/gpy021
Publication status	Published - 1 Oct 2018
Externally published	Yes

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10.1093/oep/gpy021Licence: CC BY-NC

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title = "Personality and pay: Do gender gaps in confidence explain gender gaps in wages?",

abstract = "This study explores whether gender patterns in personality traits contribute to the gender gap in hourly wage rates, focusing on traits that reflect an individual's confidence to take on a challenge. To capture confidence, we use a psychological measurement known as Achievement Motivation, which is dually comprised of 'hope for success' and 'fear of failure'. This personality dimension is examined in addition to the Big Five personality traits and Locus of Control (LOC). Using 2013 wage data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, our Oaxaca-Blinder decomposition model reveals that men's stronger hope for success, lower fear of failure and lower agreeableness contribute to the gender wage gap, while women's higher level of conscientiousness is the only trait that serves to narrow it.",

author = "Leonora Risse and Lisa Farrell and Fry, {Tim R.L.}",

note = "Funding Information: Supplementary material is available online at the OUP website. This material consists of an online appendix and the replication file for this paper{\textquoteright}s analysis. This paper uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey which is funded by the Australian Government Department of Social Services and managed by the Melbourne Institute of Applied Economic and Social Research. The HILDA Survey data can be accessed via application to the Australian Government Department of Social Services and the replication file includes information on how to access the HILDA Survey data. Views and findings presented in the paper are solely those of the authors. Publisher Copyright: {\textcopyright} Oxford University Press 2018. All rights reserved.",

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Personality and pay: Do gender gaps in confidence explain gender gaps in wages?

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