The Labor Market with People in It: Personality Traits and Employment Dynamics.

Issues pertaining to the organization and efficiency of the labor market and to the dynamics of employment and unemployment have always been at the forefront of the concerns of economists. Typically, such issues are approached through the analysis of the conflicting interests of a representative worker and of a representative firm, each of which intending to maximize the corresponding intertemporal objective function. Much of the research undertaken on this subject neglects the fact that each person is unique and endowed with different personality traits that influence their educational attainment, their ability to access jobs, their productivity while employed, and also their willingness to support, through social welfare mechanisms, those who become unemployed.