The contribution of personality traits and social norms to the gender pay gap: A systematic literature review

The gender pay gap is a persistent and pervasive problem. This study systematically reviews the literature on two determinants of the wage gap that have attracted attention more recently: the contribution of personality traits and social norms. Based on 39 studies identified, we discuss how personality traits and social norms are operationalized and how much of the gender wage gap they explain. We find that both are important in understanding the gap and that they are closely related, most notably, as preferences are reflections of personality traits and social norms. However, there is no clear consensus on the constructs, what they precisely capture and how to measure them. Thus, there is a great deal of heterogeneity in the results, with the contribution of personality traits and social norms to the pay gap ranging from a few to more than 20%. The literature is not conclusive on whether these factors rather explain the gap or are a source of discrimination. Key limitations of this literature emanate from concerns about the potential endogeneity of personality traits and social norms, and that studies have largely ignored that we can adapt our personality, preferences, and attitudes in adult life.