The “Big Five” and Economic Performance

The “Big Five” doesn’t comprise Honda, Toyota, Ford, GM, and Chrysler (soon to become the become the “Big Four”: Honda, Toyota, Ford, and GM-Chrysler-Obama Inc.). The “Big Five” refers to the Big Five personality traits: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

I discussed the Big Five at length here, and touched on them here. Now comes Arnold Kling, with an economic analysis of the Big Five, which draws on Daniel Nettle’s Personality: What Makes You the Way You Are. Kling, in the course of his post, discusses Nettle’s interpretations of the Big Five.

Regarding Openness, Kling quotes Nettle thusly:

Some people are keen on reading and galleries and theatre and music, whilst others are not particularly interested in any of them. This tendency towards greater exploration of all complex recreational practices is uniquely predicted by Openness….

High Openness scorers are strongly drawn to artistic and investigative professions, and will often schew traditional institutional structure and progression in order to pursue them.

Precisely. For example,  a high Openness scorer (93rd percentile) progressed from low-paid analyst (with a BA in economics) to well-paid VP for finance and administration (with nothing more than the same BA in economics), stopping along the way to own and run a business and manage groups of PhDs. The underlying lesson: Education is far less important to material success than intellectual flexibility (high Openness), combined with drive (high Conscientiusness and Neuroticism), and focus (low Extraversion and Agreeableness).

Kling says this about Conscientiousness (self-discipline and will power):

I think that people with low Conscientiousness annoy me more than just about any other type of people.

Me, too (Conscientiousness score: 99th percentile). I find it hard to be around individuals who always put off until tomorrow what they could do in a minute, who never read or return the books and DVDs you lend them, who are always ready to excuse failings (theirs and others), and who then try to cast their lack of organization (and resulting lack of personal accomplishment) as a virtue: “Life is too short to sweat the small stuff.” Yeah, but you never sweat the big stuff, either; look at the state of your house and your bank account. The small stuff and big stuff come in a single package.

According to Kling, “Nettle thinks of Extraversion as something like lust for life, sensation-seeking, and ambition.” More from Nettle:

We should be careful in equating Extraversion with sociability… shyness is most often due to … high Neuroticism and anxiety….

…The introvert is, in a way, aloof from the rewards of the world, which gives him tremendous strength and independence from them.

Right on, says this introvert (Extraversion score: 4th percentile).

Kling says this about Agreeableness:

To be agreeable, you have to be able to “mentalize” (read the feelings of others, which autistic people have trouble doing) and empathize (that is, care about others’ feelings, given that you can read them. Sociopaths can read you, but they don’t mind making you feel bad.)

On average, women are more agreeable than men. That is why Peter Thiel may have been onto something when he said that our country changed when women got the right to vote. If people project their personalities onto politics, and if agreeability goes along with more socialist policies, then giving women the right to vote should make countries more socialist.

Thiel is on to something. Although socialism gained a foothold in the U.S. during TR’s reign (i.e., long before the passage of Amendment XIX to the Constitution), it’s important to note that women were prominent agitators and muck-rakers in the early 1900s. Among other things, women were the driving force behind Prohibition. That failed experiment can now be seen as an extremely socialistic policy; it attempted to dictate a “lifestyle” choice, just as today’s socialists try to dictate  “lifestyle” choices about what we smoke, eat, drive, say, etc. — and with too-frequent success. If socialism isn’t a “motherly” attitude, I don’t know what is. (Full disclosure, my Agreeableness score is 4th percentile. Just leave me alone and I’ll live my life quite well, without any help from government, thank you.)

Finally, there’s Neuroticism, about which Nettle says:

There are motivational advantages of Neuroticism. There may be cognitive ones too. It has long been known that, on average, people are over-optimistic about the outcomes of their behaviour, especially once they have a plan… This is well documented in the business world, with its over-optimistic growth plans, and also in military leadership, where it is clear that generals are routinely over-sanguine about their likely progress and under-reflective about the complexities….

…Professional occupations are those that mainly involve thinking, and it is illuminating that Neuroticism tended to be advantageous in these fields and not in, say, sales.

Neuroticism (also known as Emotional Stability) is explained this way by an organization that administers the “Big Five” test:

People low in emotional stability are emotionally reactive. They respond emotionally to events that would not affect most people, and their reactions tend to be more intense than normal. They are more likely to interpret ordinary situations as threatening, and minor frustrations as hopelessly difficult. Their negative emotional reactions tend to persist for unusually long periods of time, which means they are often in a bad mood. These problems in emotional regulation can diminish a ones ability to think clearly, make decisions, and cope effectively with stress.

Take a person who is low in Emotional Stability (my score: 12th percentile), low in Extraversion, but high in Conscientiousness and Openness. Such a person is willing and able to tune out the distractions of the outside world, and to channel his drive and intellectual acumen in productive, creative ways — until he finally says “enough,” and quits the world of work to enjoy the better things in life.