Personality Characteristics and Labour Market Entry an exploration

In an explorative study, the value of four personality constructs in predicting success in the labour market entry has been analysed with a sample of graduates in economics from Maastricht University. The research question is: do personality characteristics predict labour market entry success and how much weight do these ‘soft’ factors have compared to the traditional ‘hard’ human capital factors like study results? Two out of the four constructs, i.e. (internal) Locus of control and Type A behaviour appear to have a positive effect on labour market success. The effects are independent of the effects of study results and other traditional human capital variables. Locus of control affects getting a job soon after graduation and having tenure, whereas Type A behaviour affects having tenure and wages. Study results merely affect job quality indicators. For obtaining an academic job, the human capital factors have a positive effect while personality has no effect at all. The findings underline the relevance of further labour market research with respect to the importance and role of the so called ‘soft’ factors like personality characteristics. At the same time, the role of ‘hard’ human capital factors is not to be neglected. Both types of factors seem to have their own and independent effects. Future research directions are given and implications of the study are discussed.