Scandinavian Working Papers in Economics
Umeå Economic Studies,
Umeå University, Department of Economics
No 741: Psychological Traits and Earnings Differences Among Men: A Study of Second - Generation Immigrants in Sweden
Niklas Hanes () and Erik Norlin ()
Additional contact information
Niklas Hanes: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Erik Norlin: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Abstract: The purpose of this study is to analyse the impact of psychological traits on earnings differentials between second-generation immigrants and individuals with native-born parents. The study is based on the cohort of men born in 1973 and residing in Sweden in December 1990. In this paper we use an indicator of psychological ability measured in connection to the military enrolment test in Sweden. The results show that the measure of psychological traits is an important determinant of earnings at the age of 30. Using an Oaxaca-Blinder decomposition we find that the earnings differences between second-generation immigrants and individuals with native born parents to a large part are explained by differences in endowments of psychological traits.
Keywords: Earnings differentials; psychological traits; military enrolment test; secondgeneration immigrants; Oaxaca-Blinder decomposition
28 pages, May 15, 2008
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