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This study explores whether gender patterns in personality traits contribute to the gender gap in hourly wage rates, focusing on traits that reflect an individualâ€™s confidence to take on a challenge. To capture confidence, we use a psychological measurement known as Achievement Motivation, which is dually comprised of â€˜hope for successâ€™ and â€˜fear of failureâ€™. 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 Oaxacaâ€“Blinder decomposition model reveals that menâ€™s stronger hope for success, lower fear of failure and lower agreeableness contribute to the gender wage gap, while womenâ€™s higher level of conscientiousness is the only trait that serves to narrow it.

Personality and pay: do gender gaps in confidence explain gender gaps in wages?