Personality and Labour Market Income: Evidence from
Longitudinal Data
Jutta Viinikainen — Katja Kokko — Lea Pulkkinen —
Jaakko Pehkonen
Abstract. This study contributes to the literature on how personality is rewarded in the labour market
by examining the relationship between personality and labour market income. Our results suggest that
adulthood extraversion is positively associated with income when education, work experience, and
unemployment history, measured prospectively from longitudinal data, are controlled for. In addition,
childhood constructiveness indicating active and well-controlled behaviour has a positive association
with income in adulthood.
1. Introduction
The psychological literature suggests that personality traits, known as the Big Five factors
of personality (neuroticism, extraversion, openness to experiences, conscientiousness, and
agreeableness), have specific associations with different vocational interests. For example,
extraversion correlates positively with entrepreneurial and social interests, openness with
artistic and investigative interests, conscientiousness with conventional interests, and agree-
ableness with social interests (see Tokar et al., 1998 for a review). Studies have also revealed
associations between personality traits and various aspects of work-related performance, as
reviewed by Burch and Anderson (2009). Conscientiousness has been shown to be associated
with several work performance criteria, although there is recent evidence that the narrower
subtraits of global conscientiousness, such as order and dependability, have specific associa-
tions with performance (Dudley et al., 2006). Neuroticism has generally been found to be
negatively associated with job performance and different dimensions of career success. Extra-
version is most consistently related to leadership and is also associated with teamwork and
career success. In addition, Seibert and Kraimer (2001) reported that extraversion is positively
related to salary levels, promotion, and career satisfaction. There is also some evidence
(Pulkkinen et al., 2006) that adaptive child and adolescent social behaviour, indicated by a
combination of social activity and high self-control of behaviour, precedes a high level of adult
achievement, including a high level of education, high occupational status, and stable employ-
ment. Personality characteristics assessed as early as early school age might thus matter when
it comes to success in working life and earnings.
Jutta Viinikainen (author for correspondence) — Katja Kokko — Lea Pulkkinen — Jaakko Peh-
konen, School of Business and Economics, Department of Psychology, P.O. Box 35, FI-40014 Univer-
sity of Jyväskylä, Jyväskylä, Finland. E-mail: jutta.viinikainen@jyu.fi.
Katja Kokko was funded by grant No. 118316 and Lea Pulkkinen by grant No. 127125 awarded by
the Academy of Finland. Jaakko Pehkonen and Jutta Viinikainen were funded by grants from the Yrjö
Jahnsson Foundation. We would like to thank anonymous referees for their helpful comments.
LABOUR 24 (2) 201–220 (2010) JEL J24, J31, I20
© 2010 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, 9600 Garsington Rd., Oxford OX4 2DQ, UK and 350 Main St.,
Malden, MA 02148, USA.