Factors influencing adult earnings: Findings from a nationally representative sample

This study explored a longitudinal data set of over 5000 adults’ determining factors that influence adults salary/wage earnings. In a large, nationally representative sample in the UK, the National Child Development Study, data were collected at birth, in childhood (age 11), and adulthood (age 50) to examine the effects of family social background, childhood ability tests scores, adult personality traits, educational and occupational attainment on current earnings. Results showed that for men, parental social status and trait Conscientiousness had modest but significant and direct influence in their earnings in adulthood; whereas for women the traits of intellect and emotional stability had modest but significant and direct influence in their financial well-being in adulthood. For both men and women, childhood intelligence had a significant and direct effect on adult earnings, and family background and childhood intelligence in part predicted adult earnings mediating through educational qualifications and occupational prestige. The strongest predictor of adult earnings was current occupational prestige. The gender wage differential and its implications are discussed.

► This study had a longitudinal sample of over 5000 adults traced over 50 years. ► Education, parental social and occupational prestige were related to financial well being. ► Intelligence measured in childhood and adult personality also predicted financial well being. ► Personality factors were more related to financial being in women compared to men.