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Faculty of Economics

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Flinn, C. J., Todd, P. E. and Zhang, W.

Personality Traits, Intra-Household Allocation and the Gender Wage Gap

European Economic Review

Vol. 109 pp. 191-220 (2018)

Abstract: A model of how personality traits affect household time and resource allocation decisions and wages is developed and estimated. In the model, households choose between two behavioral modes: cooperative or noncooperative. Spouses receive wage offers and allocate time to supplying labor market hours and to producing a public good. Personality traits, measured by the so-called Big Five traits, can affect household bargaining weights and wage offers. Model parameters are estimated by Simulated Method of Moments using the Household Income and Labor Dynamics in Australia (HILDA) data. Personality traits are found to be important determinants of household bargaining weights and of wage offers and to have substantial implications for understanding the sources of gender wage disparities.

Keywords: Gender wage differentials, Personality and economic outcomes, Household bargaining, Time allocations

JEL Codes: D10, J12, J16, J22, J31, J71

Author links: Weilong Zhang  

Publisher's Link:

Cambridge Working Paper in Economics Version of Paper: Personality Traits, Job Search and the Gender Wage Gap, Flinn, C. J., Todd, P. E. and Zhang, W., (2020)

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