Data analysis suggests temperament and economic preferences guide career choices

A doctoral dissertation to be defended at the Oulu Business School at the University of Oulu reveals that the temperament traits of those who become leaders include curiosity, impulsiveness, energetic, and self-confidence. For entrepreneurs, economic preferences, such as a high willingness to take risks, are particularly significant.

M.Sc. (Econ.) Mikko Vaaramo will defend his dissertation on factors influencing career choice on December 13.

The study focuses on leaders and self-employed but also examines personality traits more broadly across different occupational groups, uncovering variations between them. For example, among men, low risk-taking propensity is associated with construction, repair, and transportation jobs. Among women, low persistence is linked to office and customer service roles, whereas high persistence predicts employment in construction and manufacturing jobs.

The dissertation provides new insights into why individuals end up in certain careers. The findings indicate that temperament and economic preferences are key components of career choice, alongside human capital factors such as skills and education.

While economic research has traditionally emphasized the role of human capital—skills, education, and experience—in career decisions, the role of personality and economic preferences has also been studied, though typically limited to the “Big Five” personality traits: extraversion, neuroticism, conscientiousness, openness to experience, and agreeableness. Personality and preferences have often been examined separately, leaving limited understanding of the broader picture and traits outside the commonly used metrics.

This study complements previous research by highlighting temperament, the stable and hereditary core of personality and emphasizing the importance of economic preferences such as risk tolerance and patience. It underscores the role of deeper layers of personality in career choices and offers valuable insights for career counseling and leadership development.

The research utilizes data from the Northern Finland Birth Cohort 1966, which combines registry information on individuals’ occupations, socioeconomic status, marriages, educational achievements, and income.