Gender differences in personality and earnings: Evidence from Russia

Does personality affect earnings? If so, are there gender differences in personality that explain part of the gender wage gap? We use survey data collected from over 2600 Russian employees between 2000 and 2003 to evaluate the impact on earnings of two personality traits: locus of control and challenge-affiliation. We find that gender differences in personality traits are significant. Men are more likely to exhibit an internal locus of control and need for challenge, while women are more likely to exhibit an external locus of control and need for affiliation. Moreover, there are differences in the effect of personality on earnings by gender - women's earnings are strongly affected by personality, while the effect of personality on men's earnings is small and not always significant. Among the employees participating in our study, personality traits explain as much as 8% of the gender wage gap. (c) 2006 Elsevier B.V. All rights reserved.