Abstract:While survey data supports a strong relationship between personality and labour market outcomes, the exact mechanisms behind this association remain unexplored. We take advantage of a controlled laboratory set-up to explore whether this relationship operates through productivity. Using a realeffort task, we analyse the impact of the Big Five personality traits on performance. We find that more neurotic subjects perform worse, and that more conscientious individuals perform better. These findings suggest that a… Show more
“…This is in line with behavioral experiments showing that Conscientiousness is positively and Neuroticism is negatively correlated with performance (Callen et al, 2018;Cubel et al, 2016;Donato et al, 2017). The reason might be that our personality measures are noisy and the sample is small.…”
Section: Discussionsupporting
confidence: 88%
“…5 Experimental evidence, however, is mixed as to which specific traits are behaviorally relevant (e.g., Bejarano, Green, & Rassenti, 2016) and whether their impact depends on the experimental context and task. For instance, Conscientiousness has been found to be positively correlated with individuals' performance in an experimental real-effort task, whereas for Neuroticism, there is a negative relationship (Cubel, Nuevo-Chiquero, Sanchez-Pages, & Vidal-Fernandez, 2016). Similar relationships are observed in health care settings (Callen et al, 2018;Donato et al, 2017).…”
Section: Contribution To the Literaturementioning
confidence: 72%
“…It is meant to complement empirical studies. (c) The availability of individual behavioral data allows the link to individual characteristics (e.g., Cubel, Nuevo-Chiquero, Sanchez-Pages, & Vidal-Fernandez, 2016;Donato, Miller, Mohanan, Truskinovsky, & Vera-Hernandez, 2017). (b) Our controlled lab environment enables us to analyze the causal effect of one variable of interest in an otherwise stable scenario (e.g., Falk & Heckman, 2009)-in particular, the effect of audits and fines on dishonesty.…”
Dishonest behavior significantly increases the cost of medical care provision. Upcoding of patients is a common form of fraud to attract higher reimbursements. Imposing audit mechanisms including fines to curtail upcoding is widely discussed among health care policy‐makers. How audits and fines affect individual health care providers' behavior is empirically not well understood. To provide new evidence on fraudulent behavior in health care, we analyze the effect of a random audit including fines on individuals' honesty by means of a novel controlled behavioral experiment framed in a neonatal care context. Prevalent dishonest behavior declines significantly when audits and fines are introduced. The effect is driven by a reduction in upcoding when being detectable. Yet upcoding increases when not being detectable as fraudulent. We find evidence that individual characteristics (gender, medical background, and integrity) are related to dishonest behavior. Policy implications are discussed.
“…This is in line with behavioral experiments showing that Conscientiousness is positively and Neuroticism is negatively correlated with performance (Callen et al, 2018;Cubel et al, 2016;Donato et al, 2017). The reason might be that our personality measures are noisy and the sample is small.…”
Section: Discussionsupporting
confidence: 88%
“…5 Experimental evidence, however, is mixed as to which specific traits are behaviorally relevant (e.g., Bejarano, Green, & Rassenti, 2016) and whether their impact depends on the experimental context and task. For instance, Conscientiousness has been found to be positively correlated with individuals' performance in an experimental real-effort task, whereas for Neuroticism, there is a negative relationship (Cubel, Nuevo-Chiquero, Sanchez-Pages, & Vidal-Fernandez, 2016). Similar relationships are observed in health care settings (Callen et al, 2018;Donato et al, 2017).…”
Section: Contribution To the Literaturementioning
confidence: 72%
“…It is meant to complement empirical studies. (c) The availability of individual behavioral data allows the link to individual characteristics (e.g., Cubel, Nuevo-Chiquero, Sanchez-Pages, & Vidal-Fernandez, 2016;Donato, Miller, Mohanan, Truskinovsky, & Vera-Hernandez, 2017). (b) Our controlled lab environment enables us to analyze the causal effect of one variable of interest in an otherwise stable scenario (e.g., Falk & Heckman, 2009)-in particular, the effect of audits and fines on dishonesty.…”
Dishonest behavior significantly increases the cost of medical care provision. Upcoding of patients is a common form of fraud to attract higher reimbursements. Imposing audit mechanisms including fines to curtail upcoding is widely discussed among health care policy‐makers. How audits and fines affect individual health care providers' behavior is empirically not well understood. To provide new evidence on fraudulent behavior in health care, we analyze the effect of a random audit including fines on individuals' honesty by means of a novel controlled behavioral experiment framed in a neonatal care context. Prevalent dishonest behavior declines significantly when audits and fines are introduced. The effect is driven by a reduction in upcoding when being detectable. Yet upcoding increases when not being detectable as fraudulent. We find evidence that individual characteristics (gender, medical background, and integrity) are related to dishonest behavior. Policy implications are discussed.
“…It is a noteworthy finding that the only trait that was found to advantage women-conscientiousness-is one that has been demonstrated to be directly productivity-enhancing in the workplace: individuals who are well organized, dependable, hard-working and efficient have been proven to be quantifiably more productive (Barrick and Mount, 1991;Salgado, 1997;Fallon et al, 2000;Hurtz and Donovan, 2000;Chang and Smithikrai, 2010;Cubel et al, 2016). On the other hand, the traits that were found to advantage men are not necessarily indicative of higher productivity, but instead could be merely signals of personal ambition and confidence: individuals who have a stronger hope for success, weaker fear of failure and lower agreeableness are more likely to promote their own abilities, put themselves forward for challenging roles, and negotiate strongly for pay rises-all actions that are conducive to higher wages.…”
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.JEL classifications: D91, J16, J31.
“…While broader than most measures used in literature, our human capital composite is far from complete. For instance, findings by Cubel et al (2016) highlight the importance of non-cognitive skills for individual productivity which suggests that these also represent an important part of a country's stock of human capital. In this regard it would be desirable if future waves of PIAAC were to include better measures of individuals' non-cognitive skills, for instance measures of personality traits such as extraversion, agreeableness, neuroticism, conscientiousness, and openness to experience, characteristics which psychologists call "the big five."…”
We carry out a classical development accounting exercise using data from the "Programme for the International Assessment of Adult Competencies" (PIAAC). PIAAC data, available for 30 upper-middle and high-income countries and nationally representative for the working-age population, allow us to construct a multidimensional measure for the stock of human capital in each country, taking into account years of schooling, job experience, cognitive skills, on-the-job-training, and health. Individual level PIAAC data for the US are then used to estimate the weight of each dimension in the human capital composite by running Mincerian wage regressions. We find that differences in physical capital together with our broad measure of human capital account for 42% of the variance in output per worker, compared to only 27% when proxying human capital by average years of schooling only. Differences in cognitive skills play the largest role while experience and health are of lesser importance.Financial support from the Spanish Ministry of Science and Innovation through Grant ECO2013-44920-P is gratefully acknowledged. We would also like to thank an anonymous referee for his or her insightful comments.
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