Emotional stability and firm productivity. Evidence from German matched employer-employee data

Author: Giorgio Brunello (University of Padova) • Caroline Neuber-Pohl (BIBB)
Posted: 23 January 2026

Abstract

Using matched employer-employee data for Germany, we estimate firm production functions augmented with workers’ personality traits. We find that emotional stability is the only trait that positively affects firm productivity. Its effect shows up mainly in large firms operating with a higher than median share of educated workers.
JEL codes: J24
Keywords: personality traits, firm productivity