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The Importance of Early Conscientiousness for Socio-Economic Outcomes: Evidence from the British Cohort Study

Author

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  • Prevoo, Tyas

    (Maastricht University)

  • ter Weel, Bas

    (SEO Amsterdam)

Abstract
This research estimates models of the importance of conscientiousness for socio-economic outcomes. We use measures of conscientiousness at age 16 to explain adult wages and other outcomes, such as crime, health and savings behaviour. We use several waves from the 1970 British Cohort Study. Our estimates suggest a significant and sizeable correlation between early conscientiousness and adult outcomes. Measurement error is corrected for by applying IV-techniques, errors-in-variables estimators and structural equation modelling. Investigation of the lower-order structure of conscientiousness suggests that facets related to reliability, decisiveness and impulse control are most strongly correlated with outcomes. We also investigate changes in early conscientiousness and find that persons who experience declines in the personality distribution between the ages 10 and 16 seem to be worse off in terms of a variety of socio-economic outcomes.

Suggested Citation

  • Prevoo, Tyas & ter Weel, Bas, 2013. "The Importance of Early Conscientiousness for Socio-Economic Outcomes: Evidence from the British Cohort Study," IZA Discussion Papers 7537, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7537
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    Cited by:

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    2. Attanasio, Orazio & Blundell, Richard & Conti, Gabriella & Mason, Giacomo, 2020. "Inequality in socio-emotional skills: A cross-cohort comparison," Journal of Public Economics, Elsevier, vol. 191(C).
    3. Anna Adamecz & Morag Henderson & Nikki Shure, 2024. "Intergenerational educational mobility – The role of non-cognitive skills," Education Economics, Taylor & Francis Journals, vol. 32(1), pages 59-78, January.
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    5. 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).
    6. 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.
    7. Gensowski, Miriam, 2018. "Personality, IQ, and lifetime earnings," Labour Economics, Elsevier, vol. 51(C), pages 170-183.
    8. Golsteyn, Bart H.H. & Magnée, Cécile A.J., 2020. "Does sibling gender affect personality traits?," Economics of Education Review, Elsevier, vol. 77(C).
    9. Brown, Sarah & Taylor, Karl, 2015. "Charitable Behaviour and the Big Five Personality Traits: Evidence from UK Panel Data," IZA Discussion Papers 9318, Institute for the Study of Labor (IZA).
    10. Mareckova, Jana & Pohlmeier, Winfried, 2017. "Noncognitive Skills and Labor Market Outcomes: A Machine Learning Approach," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168195, Verein für Socialpolitik / German Economic Association.
    11. Melchior Vella, 2024. "The relationship between the Big Five personality traits and earnings: Evidence from a meta‐analysis," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 685-712, July.
    12. Peter Frauke H. & Spiess C. Katharina, 2016. "Family Instability and Locus of Control in Adolescence," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1439-1471, September.
    13. Frauke H. Peter & Pia S. Schober & Katharina C. Spiess, 2016. "Early Birds in Day Care: The Social Gradient in Starting Day Care and Children’s Non-cognitive Skills," CESifo Economic Studies, CESifo Group, vol. 62(4), pages 725-751.
    14. Maximilian Bach & Josefine Koebe & Frauke H. Peter, 2019. "Long Run Effects of Universal Childcare on Personality Traits," Discussion Papers of DIW Berlin 1815, DIW Berlin, German Institute for Economic Research.
    15. Zakharov, Alexei & Bondarenko, Oxana, 2021. "Social status and social learning," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    16. Jim Engle‐Warnick & Sonia Laszlo & Nagham Sayour, 2020. "Experimental evidence on personality traits and preferences," Bulletin of Economic Research, Wiley Blackwell, vol. 72(3), pages 288-317, July.
    17. Del Bono, Emilia & Etheridge, Ben & Garcia, Paul, 2024. "The economic value of childhood socio-emotional skills," ISER Working Paper Series 2024-01, Institute for Social and Economic Research.
    18. Claire Tyler, 2016. "The role of non-cognitive and cognitive skills in accounting for the intergenerational transmission of 'top job' status," DoQSS Working Papers 16-03, Quantitative Social Science - UCL Social Research Institute, University College London.
    19. Peter, Frauke, 2016. "The effect of involuntary maternal job loss on children's behaviour and non-cognitive skills," Labour Economics, Elsevier, vol. 42(C), pages 43-63.
    20. Maczulskij, Terhi & Viinikainen, Jutta, 2018. "Is personality related to permanent earnings? Evidence using a twin design," Journal of Economic Psychology, Elsevier, vol. 64(C), pages 116-129.
    21. Sefane Cetin, 2021. "Joint Retirement: Evidence on the Heterogeneity of Spousal Effects," LIDAM Discussion Papers IRES 2021031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    22. Linda Kamas & Anne Preston, 2020. "Does Empathy Pay? Evidence on Empathy and Salaries of Recent College Graduates," Journal of Labor Research, Springer, vol. 41(1), pages 169-188, June.
    23. Justine Herve & Helene Purcell & Subha Mani, 2023. "Conscientiousness Matters: How does Personality affect Labor Market Outcomes?," Fordham Economics Discussion Paper Series dp2023-05er:dp2023-05, Fordham University, Department of Economics.
    24. Flavia Coda Moscarola & Daniela Del Boca & Giovanna Paladino, 2024. "Intergenerational Transmission of Preferences and Parental Behaviours," CESifo Working Paper Series 10902, CESifo.

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    More about this item

    Keywords

    conscientiousness; personality traits; preferences; socio-economic outcomes;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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