Search

Previous research shows that female workers are less sensitive to wages in their decision to switch jobs than male workers, and that this could explain a substantial part of the gender wage gap. This paper studies to what extent gender differences in preferences and personality traits explain the gender gap in the wage-elasticity of job-to-job transitions in the labor market. Using a novel decomposition approach in the context of mediated moderation and using German Socio-Economic Panel Survey (G-SOEP) data for the period 2005–2019, we find that gender differences in risk preferences, patience, trust, reciprocity, altruism, conscientiousness, ambition and self-esteem explain about 25% of the gender gap in wage-elasticities of job separations. A detailed decomposition suggests that risk preferences, trust and ambition contribute most to this gender gap in wage-elasticity. [ABSTRACT FROM AUTHOR]

Abstract Previous research shows that female workers are less sensitive to wages in their decision to switch jobs than male workers, and that this could explain a substantial part of the gender wage gap. This paper studies to what extent gender differences in preferences and personality traits explain the gender gap in the wage-elasticity of job-to-job transitions in the labor market. Using a novel decomposition approach in the context of mediated moderation and using German Socio-Economic Panel Survey (G-SOEP) data for the period 2005–2019, we find that gender differences in risk preferences, patience, trust, reciprocity, altruism, conscientiousness, ambition and self-esteem explain about 25% of the gender gap in wage-elasticities of job separations. A detailed decomposition suggests that risk preferences, trust and ambition contribute most to this gender gap in wage-elasticity.

The formation of economic preferences in childhood and adolescence has long-term consequences for life outcomes. We study in an experiment how both birth order and siblings' gender composition are related to risk, time, and social preferences. We find that second-born children are typically less patient, more risk-tolerant, and more trusting. However, siblings' gender composition interacts importantly with birth order effects. Second-born children are more risk-taking only with same-gender siblings. In mixed-gender environments, children seem to identify with the gender stereotype that boys are much more willing to take risks than girls, irrespective of birth order. For trust and trustworthiness, birth order effects are larger with mixed-gender siblings. Only for patience, siblings' gender composition does not matter. [ABSTRACT FROM AUTHOR]

Summary: Hanushek et al. (2022) show that students in countries in which people are more patient and less risk‐taking perform better in the Programme for International Student Assessment (PISA) test. In this paper, we probe the robustness of this study. Our narrow replication shows that most of the results are robust to alternative model specifications. Our broad replication shows that the main results are robust to measuring student performance with data from the Trends in International Mathematics and Science Study (TIMSS) and the Progress in International Reading Literacy Study (PIRLS) instead of PISA. [ABSTRACT FROM AUTHOR]

To what extent do economic preferences and institutional trust predict compliance with physical distancing rules during the COVID‐19 pandemic? We reexamine this question by introducing the theoretical and empirical distinction between individual health behaviors in the public and in the private domain (e.g., keeping a distance from strangers vs. abstaining from private gatherings with friends). Using structural equation modeling to analyze survey data from Germany's second wave of the pandemic (N = 3350), we reveal the following major differences between compliance in both domains: Social preferences, especially (positive) reciprocity, play an essential role in predicting compliance in the public domain but are barely relevant in the private domain. Conversely, individuals' degree of trust in the national government matters predominantly for increasing compliance in the private domain. The clearly strongest predictor in this domain is the perception pandemic‐related threats. Our findings encourage tailoring communication strategies to either domain‐specific circumstances or factors common across domains. Tailored communication may also help promote compliance with other health‐related regulatory policies beyond COVID‐19. [ABSTRACT FROM AUTHOR]

This study replicates and extends the work of Falk and Hermle (2018. "Relationship of Gender Differences in Preferences to Economic Development and Gender Equality." Science 362 (6412): eaas9899), who hypothesized that gender differences in economic preferences (patience, altruism, willingness to take risks, negative and positive reciprocity, and trust) were related to economic development and gender equality. While we were able to replicate their main results, we found that a number of methodological choices called for reexamination. Specifically, the use of an ad hoc gender equality index built by the authors lacked systematic justification, which led us to employ solely well-established indexes from gender studies in the subsequent analysis. This new analysis confirmed a positive and statistically significant association between aggregated gender differences in economic preferences and economic development conditional on gender equality. However, in contrast to the original article, the evidence of the relationship between gender differences and gender equality conditional on economic development was weak. We also investigated the relationships for the separate economic preferences and found that economic development predicts gender differences in all six preferences, whereas gender equality seems to have a negligible or null influence on most of them. Our findings provide a more nuanced view of the gender differences in economic preferences, with possible implications for policy-making. [ABSTRACT FROM AUTHOR]

Do voters update their attitudes toward economic issues in line with their material self-interest? The consensus among students of public opinion is that material self-interest plays a very limited role and that competing non-material factors, such as partisanship or ideological predispositions, do most of the heavy lifting. This paper moves beyond comparing the role of material and non-material factors. Instead, we examine how these factors combine to shape policy preferences. Specifically, we propose a friendly amendment to Zaller's influential model according to which attitudinal change results from the interaction between changes in elite messaging on the one hand and individual political predispositions on the other. In Zaller's model, partisanship and ideological predispositions help explain why some resist and others embrace new elite messaging. We hypothesize that material self-interest also conditions the effect of elite messaging. Using British individual-level panel data collected over more than a decade, we show that material hardship predicts who, among left-wing voters, resist new right-wing partisan cues. Our results highlights the incremental impact of material self-interest on economic attitudes. [ABSTRACT FROM AUTHOR]

Background. Non-urbanized territories in many countries face problems of economic deprivation, low employment, insufficient access to social and infrastructural services. Activation of the potential of preferential zones as a tool for the development of such territories becomes extremely important for achieving sustainable and even economic growth. The purpose is to identify the conditions and principles of the implementation of preferential zones as a tool for the development of non-urbanized territories. Materials and methods. The author proposes a scientific approach to the study of the concept of "non-urbanized territories". The potential for the development of such territories is considered, including natural resources, socio-infrastructural opportunities, labor potential, technical and economic advantages, innovative prospects and tourism potential. The main tasks that are solved in the formation of preferential zones are analyzed, such as stimulating economic growth, developing small and medium-sized businesses, increasing innovation potential, etc. The work is based on foreign and Russian experience in creating preferential zones in nonurbanized territories, and analyzes successful practices and problems associated with this process. Results. In general, the use of preferential regimes in non-urbanized territories can become an effective tool for attracting investment, creating jobs, developing the economy and improving the quality of life of the population. However, it is necessary to take into account the specific features of each territory and develop individual approaches to the implementation of preferential regimes so that they are as effective and sustainable as possible. Conclusions. The data and recommendations obtained will be useful for government agencies, regional authorities, investors and all interested parties working in the development of non-urbanized territories.

Do risk preferences play a role when deciding whether to act pro-environmentally? Looking at 28 different behaviors case by case -- including recycling, waste reduction, energy and water conservation, consumer behavior, and environmental policy support -- our data suggest no relation between most of the behaviors and economic risk preferences. However, economic risk preferences appear to have some relevance for travel mode choice and for specific consumer preferences (eco-friendly detergents, organic food, and single-use plastics), perhaps because people are better able to appreciate aspects of these behaviors related to risk (e.g., possibility of traffic accidents, health risks). [ABSTRACT FROM AUTHOR]

This paper suggests that intergenerationally transmitted ancestral characteristics have a significant impact on attitudes toward immigration. Using a sub-population of second-generation immigrants from the European Social Survey (ESS), we find that historical and linguistic factors that contributed to weaker long-term orientation and higher risk aversion are associated with a greater concern, especially among medium- and low-skilled workers, about the economic consequences of immigration and the admission of poorer immigrants. The results are robust to alternative sample definitions, estimation methodology, a rich set of geographical controls, and several potential confounding factors at the country of origin level. [ABSTRACT FROM AUTHOR]

Objectives Several theories predict changes in individuals' economic preferences across the life span. To test these theories and provide a historical overview of this literature, we conducted meta-analyses on age differences in risk, time, social, and effort preferences as assessed by behavioral measures. Methods We conducted separate meta-analyses and cumulative meta-analyses on the association between age and risk, time, social, and effort preferences. We also conducted analyses of historical trends in sample sizes and citation patterns for each economic preference. Results The meta-analyses identified overall no significant effects of age for risk (r  = −0.02, 95% CI [−0.06, 0.02], n  = 39,832) and effort preferences (r  = 0.24, 95% CI [−0.05, 0.52], n  = 571), but significant effects of age for time (r  = −0.04, 95% CI [−0.07, −0.01], n  = 115,496) and social preferences (r  = 0.11, 95% CI [0.01, 0.21], n  = 2,997), suggesting increased patience and altruism with age, respectively. Equivalence tests, which compare these effects to practically important ones (i.e. r  = |0.1|), however, suggest that all effects are of trivial significance. The analyses of temporal trends suggest that the magnitude of effects and sample sizes have not changed significantly over time, nor do they dramatically affect the extent that articles are cited. Discussion Overall, our results contrast with theories of aging that propose general age effects for risk and effort preferences, yet provide some but tenuous support for those suggesting age-related changes in time and social preferences. We discuss implications for theory development as well as future empirical work on economic preferences. [ABSTRACT FROM AUTHOR]

Do risk preferences play a role when deciding whether to act pro-environmentally? Looking at 28 different behaviors case by case – including recycling, waste reduction, energy and water conservation, consumer behavior, and environmental policy support – our data suggest no relation between most of the behaviors and economic risk preferences. However, economic risk preferences appear to have some relevance for travel mode choice and for specific consumer preferences (eco-friendly detergents, organic food, and single-use plastics), perhaps because people are better able to appreciate aspects of these behaviors related to risk (e.g., possibility of traffic accidents, health risks).

Using newly published data from the Global Preference Survey which cover 76 countries (Falk et al., 2018), we document robust evidence that economic preferences are partly responsible for state-level corruption. Specifically, fixed effects estimation results show that patience, trust, and altruism discourage corruption, while negative reciprocity encourages corruption. We examine the role of economic freedom and government effectiveness as the mechanisms underlying the effect of negative reciprocity. We also find that the effects of patience and negative reciprocity are greater in a more stable political environment, and smaller in a society with faster economic growth. [ABSTRACT FROM AUTHOR]

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. Plain English Summary: In middle-aged population, business leaders are more prone to novelty-seeking and persistence than paid employees, and self-employed individuals without employees score highest in risk taking. [ABSTRACT FROM AUTHOR]

The relationship between firms' owners and managers is a quintessential example of costly principal–agent interaction. Optimal design of monetary incentives and supervision mechanisms are the two traditional ways of reducing agency costs in this relationship. In this paper, we show evidence which is consistent with a third mechanism: firms have managers whose economic preferences are aligned with owners' interests. We uncover differences in economic preferences between managers employed in firms controlled by two distinct classes of 'patrons': employee-owned firms (worker cooperatives) and conventional investor-owned firms. In a high-stakes lab-in-the-field experiment, we find that co-op managers are less risk-loving and more altruistic than their conventional counterparts. We do not observe differences between the two groups in terms of time preferences, reciprocity, and trust. Our findings are consistent with existing evidence on worker cooperatives, such as their tendency to self-select into less risky industries and their compressed compensation structures. [ABSTRACT FROM AUTHOR]

Using the decisions of 2500 girls and boys in three mini dictator games, this paper investigates how the social preferences of five cohorts of students (aged 12 to 16) evolve throughout adolescence. We find that at early ages (12 years old, 7th grade), girls tend to be egalitarian, boys are more generous, and <10 % exhibit spiteful behavior - with equal representation of girls and boys. The gender gap in both strong egalitarianism (with girls showing more egalitarianism) and weak generosity (with boys being more generous) doesn't seem to fade as they grow older. [ABSTRACT FROM AUTHOR]

Copyright of Unternehmung: Swiss Journal of Business Research & Practice is the property of Nomos Verlagsgesellschaft mbH & Co. KG and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

How our governments deal with environmental crises can depend on national culture, including time preference (i.e., short- vs. long-term orientation). Here, we follow up on the hypothesis that long-term orientation increases environmental policy performance. To this end, we use three time preference indices (including a newly constructed index with a wide spatial coverage based on Google search data). Our results show that countries with higher long-term orientation have higher environmental policy performance. This relationship is in most cases because of the positive association of long-term orientation and environmental policy performance with economic development and other factors. Only the analysis with increased spatial coverage (especially to African and Asian countries) using Google long-term orientation shows some results indicating positive relationships when considering economic development and other factors. Still, also in this analysis, the positive relationships are largely because of economic development and other factors. Expanding the spatial coverage when measuring time preference might add insights into the time preference-environmental policy performance relationship. Moreover, the results show that researchers need to control for important factors, especially economic development, when analyzing time preference and environmental policy performance or related questions, such as environmental behavior and culture, as these factors can completely, or at least largely, drive the results. • We analyze the time preference-environmental policy performance relationship. • We use three distinct time preference indices with different spatial coverages. • Long-term orientation positively correlated with environmental policy performance. • This positive correlation is mostly or completely due to economic and democratic development. • Researchers should carefully consider the use of a specific time preference index. [ABSTRACT FROM AUTHOR]

Integrating the Global Preference Survey (GPS) and its data of unique scope on national preference structures in patience, risk attitude and reciprocity into a gravity framework, this paper is the first to explore a potential influence on international trade outcomes of economic and social preferences in a unified setting. Adding to the evidence on preferences' importance for aggregate outcomes, the authors find marked differences in trade flows and relationships, both on the country-level and between bilateral partners. Their main results suggest that countries differing in their willingness to behave negatively reciprocal tend to trade significantly less amongst each other due to the destabilizing effect of unexpected punishments. On the other hand, countries that are patient or risk-averse tend to shift towards exporting more differentiated goods as opposed to homogeneous goods and vice versa. We propose term and risk transformation considerations as the driving mechanisms for this relationship. [ABSTRACT FROM AUTHOR]

This article describes the Australian Twins Economic Preferences Survey (ATEPS). The data set comprises a wide variety of preference and behavioral measures (risk aversion, impatience, ambiguity aversion, trust, confidence) elicited using incentivized decision tasks. One-thousand one-hundred twenty Australian adult twins (560 pairs) completed the survey, making it one of the largest data sets containing incentivized preference measures of twins. As the survey was conducted during the COVID-19 pandemic, we also collected information on experiences related to the pandemic, along with a variety of questions on political attitudes and mental wellbeing. We hope that ATEPS can make a valuable contribution to social science and genetics research. [ABSTRACT FROM AUTHOR]

While recent trends in the study of radical party voting have tended to focus on egalitarian attitudes and individual personality traits in their endeavour to explain radical party choice, the present study pits individual identity traits in the spotlight of ballot box behaviour, using data from the World Values Survey and European Values Survey. We analyse the link between exclusive and inclusive identity (identifying with a more restricted 'in-group' versus identifying with a larger community) and the propensity to vote for radical right and radical left parties, using differences in individual identification with respondents' home nation and as European citizens. The results show that exclusive individual identity is a good predictor of radical right party choice, even in the presence of redistributive and egalitarian values usually associated with left-wing voting. The results also speak to the literature on welfare chauvinism. While the presence of strong egalitarian and redistributive attitudes does indeed normally predict radical left party preference in line with previous findings, this relationship is complicated by the presence of exclusive individual identity, which moderates the former's effect and can induce egalitarian voters to prefer radical right parties. In conclusion, the paper explores the interaction of identity and social class. [ABSTRACT FROM AUTHOR]

Why do some post-communist countries regularly experience democratic overturn of power while others do not? This article analyzes the role of authoritarianism, adopting a novel approach concentrating on three separate dimensions (authoritarian submission, conventionalism, authoritarian aggression). Examining Montenegro, a country that has not changed its incumbent government since the breakdown of communism, the article argues that authoritarian submission, which stands for an obedient relationship to a political authority, is a relevant factor for the domination of a single party—the Democratic Party of Socialists (DPS). I test my assumptions using two surveys: the Montenegrin National Elections Study (2016) and a self-designed student survey. Notwithstanding the Montenegrin and Serb ethnic cleavage and economic preferences that remain significant for voting patterns, findings from both analyses confirm that submissive tendencies are important for voting behavior both for the national sample and for the educated young. This emphasizes the importance of psychological factors and the need to break submissive mindsets for successful democratic transformation in post-communist countries. [ABSTRACT FROM AUTHOR]

The Covid-19 pandemic is affecting health, social, mental, and economic well-being worldwide, and taking precautions and co-operation is crucial at the individual level. Using data from various sources, this study examines cross-country differences in anxiety levels and behavioral responses to the Covid-19 pandemic. Specifically, I investigate how economic preferences and development at the country-level are associated with anxiety and behavioral response and whether these factors explain contextual differences. Results show that anxiety was less common among more patient and developed societies. Yet, altruistic societies suffered more from anxiety. Higher levels of positive reciprocity and trust were also associated with stronger health-protective behavioral responses. These findings are important in eliciting the consequences of the Covid-19 pandemic for different societies during the ongoing pandemic. [ABSTRACT FROM AUTHOR]

Economic preferences may be shaped by exposure to sex hormones around birth. Prior studies of economic preferences and numerous other phenotypic characteristics use digit ratios (2D : 4D), a purported proxy for prenatal testosterone exposure, whose validity has recently been questioned. We use direct measures of neonatal sex hormones (testosterone and oestrogen), measured from umbilical cord blood (n = 200) to investigate their association with later-life economic preferences (risk preferences, competitiveness, time preferences and social preferences) in an Australian cohort (Raine Study Gen2). We find no significant associations between testosterone at birth and preferences, except for competitiveness, where the effect runs opposite to the expected direction. Point estimates are between 0.05–0.09 percentage points (pp) and 0.003–0.14 s.d. We similarly find no significant associations between 2D : 4D and preferences (n = 533, point estimates 0.003–0.02 pp and 0.001–0.06 s.d.). Our sample size allows detecting effects larger than 0.11 pp or 0.22 s.d. for testosterone at birth, and 0.07 pp or 0.14 s.d. for 2D : 4D (α = 0.05 and power = 0.90). Equivalence tests show that most effects are unlikely to be larger than these bounds. Our results suggest a reinterpretation of prior findings relating 2D : 4D to economic preferences, and highlight the importance of future large-sample studies that permit detection of small effects. [ABSTRACT FROM AUTHOR]

While many studies have identified an association between social class and economic preferences, we know little about the implications of changes in class location for these preferences. This article assesses how social class and intra-generational class mobility affect economic preferences drawing on longitudinal data from the British Household Panel Survey. In doing so, the article adopts a post-industrial perspective that considers horizontal and vertical class divisions. Even when time-invariant characteristics of individuals are kept constant (through fixed-effects estimation), it is found that both vertical and horizontal class location explain economic preferences. Thus, these estimations suggest that social class moulds preferences, even when accounting for factors that can lead to selection into classes. Moreover, people who change classes hold different economic preferences than their peers in the class of origin, but do not completely assimilate into their class of destination. This implies that growing intra-generational class mobility could undermine the class basis of political conflict. [ABSTRACT FROM AUTHOR]

Pension schemes in the Netherlands allow workers to redistribute their own pension wealth to increase the survivor pension of their partner. However, due to lacking communication and knowledge of survivor pensions among workers, and also due to the lack of transparent products and choice architecture, redistribution remains limited. This paper uses a stated preferences experiment that is explicitly designed for workers with a partner in the age group of 55 to 65 years to elicit their pension redistribution preferences. We find that, on average, the preferred pension wealth redistribution amounts to 50%. 35% of all individuals have such a preference. 33% of all individuals would prefer less redistribution, and 32% percent prefers to redistribute more pension income to the partner upon one's death. We further show that total family income during working life does not affect the redistribution to survivor pensions. However, the distribution of the contribution to total family income before retirement across partners, as well as the survival likelihood of the partner and the number of years the partner is expected to survive, have a significant causal impact on the preferred pension redistribution decision. The preference for redistribution to survivor pensions also depends significantly on personal characteristics, preferences and social attitude. Males have a significantly stronger preference for redistribution compared to females. Moreover, forward-looking, more risk averse and more altruistic individuals have a stronger preference to redistribute part of their pension wealth to a survivor pension. Finally, in particular when employees have the perception that their partner is more forward looking, they are willing to invest more in a survivor pension. [ABSTRACT FROM AUTHOR]

Copyright of Revue Economique is the property of Fondation Nationale des Sciences Politiques and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study investigates the nuanced impact of macroeconomic conditions on various economic preferences, broadening the scope beyond conventional risk preference analysis. Utilizing the Global Preference Survey data with a sophisticated nonlinear regression model, we reveal that favorable macroeconomic conditions boost patience, yet simultaneously reduce risk aversion, altruism, willingness to penalize unfair actions, and trust levels. These significant shifts in economic preferences, driven by macroeconomic scenarios, carry substantial implications for financial markets, investment behaviors, and the broader macroeconomy, necessitating in-depth exploration in financial research and policy design. • Macroeconomic conditions affect a wide array of human economic preferences. • Favorable macroeconomic conditions boost patience. • Risk aversion, altruism, negative reciprocity, and trust are negatively affected. • The globally representative dataset employed renders the results global validity. [ABSTRACT FROM AUTHOR]

This paper explores the individual and joint predictive power of concepts from economics, psychology, and criminology for individual norm enforcement behavior. More specifically, we consider economic preferences (patience and attitudes towards risk), personality traits from psychology (Big Five and locus of control), and a self-control scale from criminology. Using survey data, we show that the various concepts complement each other in predicting self-reported norm enforcement behavior. The most significant predictors stem from all three disciplines: stronger risk aversion, conscientiousness and neuroticism as well as higher levels of self-control increase an individual's willingness to enforce norms. Taking a broader perspective, our results illustrate that integrating concepts from different disciplines may enhance our understanding of heterogeneity in individual behavior. [ABSTRACT FROM AUTHOR]

Objective - This research aims to provide empirical evidence on the factors motivating consumers to save in Islamic banking.Methods - The one sample t-test is employed to test hypothesis. The validity and the reliability of research variables have been examined.Results - The result proved that consumers’ decision to save in Islamic banking are influenced by economic and religious factors, such as receiving economic benefits, quick services, online facilities, easily reachable locations, and having a better understanding of Islamic principles.Conclusions - The existence of a relationship between economic and religious preference proves that, in making decisions, consumers wish to attain two satisfaction levels: satisfaction in the world and in the hereafter.

This study presents two‐level static and dynamic responsive load scheduling strategies for optimal tradeoff between scheduling preferences of demand response provider (DRP), demand response provider agent (DRPA) and distribution system operator (DSO) using moving time horizon control for real‐time scheduling. The first level comprises of DRP scheduling with the objective of minimizing the electricity bill payments. The second stage includes a rescheduling strategy aided by DSO scheduling preferences constrained by the economic preferences of consumers set up in the first level of the scheduling strategy. There are two strategies for the second level: namely, static residential demand response (S‐RDR), and dynamic residential demand response (D‐RDR), which differ by the time sequence of operation and interactions between DRPA and DRPs. In S‐RDR, the interactions between the two are limited to single event‐acknowledge policy wherein all the DRPs act to schedule their responsive loads in a day ahead fashion. However, in D‐RDR, multiple/continuous iterations take place between DRPA and DRPs with the consideration of optimal performance with respect to real‐time market prices. The proposed framework is simulated using IEEE 34 bus distribution system. The simulation results are presented and discussed to analyse and compare the performance of proposed scheduling strategies with tariff‐based and centralized scheduling approaches. [ABSTRACT FROM AUTHOR]

Although personality and cognitive ability are separate (sets of) constructs, we argue and demonstrate in this article that their effects are difficult to tease apart, because personality affects the performance on cognitive tests and cognitive ability affects the item responses on personality assessments. Cognitive ability is typically measured with tests of items with correct answers; personality is typically measured with rating-scale self-reports. Oftentimes conclusions regarding the personality–ability relationship have as much to do with measurement methods as with the construct similarities and differences. In this article, we review key issues that touch on the relationship between cognitive ability and personality. These include the construct-method distinction, sources of test score variance, the maximal vs. typical performance distinction, and the special role for motivation in low-stakes testing. We review a general response model for cognitive and personality tests that recognizes those sources of test score variance. We then review the approaches for measuring personality through performance (objective personality tests, grit game, coding speed, economic preferences, and confidence), test and survey behavior (survey effort, response time, and item position effects), and real-world behavior (study time, registration latency, behavior residue, and social media). We also discuss ability effects on personality tests, indicated by age and cognitive ability effects, anchoring vignette rating errors, and instructions to ‘fake good’. We conclude with a discussion of the implications for our understanding of personality and ability differences, and suggestions for integrating the fields.