ATICLE NAME: How your personality traits affect your paycheck
What is intelligence quotient?
An intelligence quotient (IQ) is the total score derived from several standardized test designed to assess human intelligence.
What is “Big five personality traits”?
The Big Five personality traits are based on five broad characteristics used in psychology to describe variations in human personality. The five characteristics are:
How your personality traits affect your paycheck
Study by Miriam Gensowski at the University of Copenhagen talks about correlation between personality traits and paycheck. He revisits a data set from all schools in California, grades 1-8 in 1921-1922 who scored in the top 0.5% of the IQ distribution. The data then covered how well these students did through 1991. The students were rated along the similar lines to “Big five” personality traits – openness to experience, conscientiousness, extroversion, agreeableness and neuroticism.
The results of the study were as under-
Men who measure as one standard deviation higher on conscientiousness earn on average extra $567,000 over their lifetimes or 16.7% of average lifetime earnings.
On measuring extraversion it was one standard deviation higher than average, in terms of value it is worth $490,100.
Men with higher agreeableness earn significantly less. In terms of agreeableness one standard deviation higher on it reduces lifetime earnings by about 8 % or $267,600.
The magnitude extroversion and conscientiousness is smaller as women earned less because of restricted opportunities. In addition, extroversion is more strongly correlated with higher earnings than conscientiousness, unlike for the men.
Higher earning is also related with higher IQ (by about 5 percent or $184,100 for a one standard deviation boost).
The data also shows some interesting ways of rethinking education such as:
There is no relation between higher education and greater conscientiousness.
However higher education is related to higher financial yields. On the basis of this we can say that one must adjust our personality traits, as higher education does seem to yield high financial returns, (12 percent a year for getting a college degree, again within this sample only). A doctorate is worth approximately 1.5 times of that, or about $1.7 million.
IQ and conscientiousness does not have high correlation.
The quality of openness is moderately correlated with IQ (positively), thus this implies that the smarter workers are more willing to experiment and try new things.
However these observations cannot be generalized as there are many other factors that need to be considered.
This article basically shows another dimension of what we had studied earlier about the “Big five personality traits”. It shows how intelligence quotient is related to the big five, and states observations about how each trait is correlated with IQ (intelligence quotient). It helps us to relate personality traits with intelligence which will be useful for the organization when it comes to recruitment and assessing an individual both emotionally and intellectually.