Abstract

Using a unique longitudinal survey from Budapest, Hungary, this paper analyzes the role of extraversion in studying towards higher education and working. Extraversion is found to have no effect on higher education for young women but a significant negative effect for young men. Results from a more structural model suggest that, conditional on IQ and various measures of other personality traits, as well as past schooling experience and past behavioral problems, more extraverted men expect lower returns to higher education. These results are new in the literature and are unlikely to be caused by the specificity of the survey.