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Factors influencing adult earnings: Findings from a nationally representative sample

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  • Furnham, Adrian
  • Cheng, Helen
Abstract
This study explored a longitudinal data set of over 5000 adults’ determining factors that influence adults salary/wage earnings. In a large, nationally representative sample in the UK, the National Child Development Study, data were collected at birth, in childhood (age 11), and adulthood (age 50) to examine the effects of family social background, childhood ability tests scores, adult personality traits, educational and occupational attainment on current earnings. Results showed that for men, parental social status and trait Conscientiousness had modest but significant and direct influence in their earnings in adulthood; whereas for women the traits of intellect and emotional stability had modest but significant and direct influence in their financial well-being in adulthood. For both men and women, childhood intelligence had a significant and direct effect on adult earnings, and family background and childhood intelligence in part predicted adult earnings mediating through educational qualifications and occupational prestige. The strongest predictor of adult earnings was current occupational prestige. The gender wage differential and its implications are discussed.

Suggested Citation

  • Furnham, Adrian & Cheng, Helen, 2013. "Factors influencing adult earnings: Findings from a nationally representative sample," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 120-125.
    • Handle: RePEc:eee:soceco:v:44:y:2013:i:c:p:120-125
    DOI: 10.1016/j.socec.2013.02.008
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    References listed on IDEAS

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    Cited by:

    1. Alderotti, Giammarco & Rapallini, Chiara & Traverso, Silvio, 2023. "The Big Five personality traits and earnings: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 94(C).
    2. Leonora Risse & Lisa Farrell & Tim R L Fry, 2018. "Personality and pay: do gender gaps in confidence explain gender gaps in wages?," Oxford Economic Papers, Oxford University Press, vol. 70(4), pages 919-949.
    3. Ma. Jesusa Corazon M Lambert & Zuroni Md Jusoh & Husniyah Abd Rahim & Norzalina Zainudin, 2023. "Factors Affecting Financial Well-being of Millennials: A Systematic Review," Information Management and Business Review, AMH International, vol. 15(2), pages 98-108.
    4. Helen Cheng & Adrian Furnham, 2014. "The Associations Between Parental Socio-Economic Conditions, Childhood Intelligence, Adult Personality Traits, Social Status and Mental Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(2), pages 653-664, June.
    5. Della Giusta, Marina & Jewell, Sarah, 2021. "Working for Nothing: Personality and Time Allocation in the UK," IZA Discussion Papers 14971, Institute of Labor Economics (IZA).
    6. Mark E. McGovern & Aditi Krishna & Victor M. Aguayo & S.V. Subramanian, 2017. "A Review of the Evidence Linking Child Stunting to Economic Outcomes," CHaRMS Working Papers 17-03, Centre for HeAlth Research at the Management School (CHaRMS).
    7. Fries, Jonathan & Pietschnig, Jakob, 2022. "An intelligent mind in a healthy body? Predicting health by cognitive ability in a large European sample," Intelligence, Elsevier, vol. 93(C).
    8. Michal Brzezinski, 2017. "Childhood circumstances, personality traits and adult-life economic outcomes in developing countries: Evidence from STEP," IBS Working Papers 05/2017, Instytut Badan Strukturalnych.
    9. Kajonius, Petri J. & Carlander, Anders, 2017. "Who gets ahead in life? Personality traits and childhood background in economic success," Journal of Economic Psychology, Elsevier, vol. 59(C), pages 164-170.

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