Economic preferences and temperament traits among business leaders and paid employees

• Main Authors: Vaaramo, M. (Mikko), Ala-Mursula, L. (Leena), Miettunen, J. (Jouko), Korhonen, M. (Marko)
• Format: Article in Journal/Newspaper
• Language: English
• Published: Springer Nature 2023
• Subjects: Business leaders; Cloninger; Economic preferences; Temperament traits; Northern Finland
• Online Access: http://urn.fi/urn:nbn:fi-fe20231024141141

Abstract This paper explores individuals’ economic preferences and temperament traits among different categories of business leaders (i.e., managers, self-employed with employees, self-employed without employees) and paid employees. We assume that these quite stable preferences and traits play a role in predicting occupational choice toward leadership roles. We use a large individual-level survey dataset (n = 5890) from the Northern Finland Birth Cohort 1966 at age 46 with linkages to nationally registered data. We construct survey measures for three types of economic preferences: risk, time, and social preferences. We use Cloninger’s inventory to measure four main temperament traits: harm avoidance, reward dependence, novelty-seeking, and persistence. We show that business leaders, in general, have different economic preferences and temperament traits than paid employees. To become a manager, especially the temperament trait of novelty-seeking seems relevant; and to become self-employed, particularly the economic preference of risk-taking appears as important.