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The economics of global personality diversity

2025-03-25 · Paul X. McCarthy, Xian Gong, Marieth Coetzer, Marian-Andrei Rizoiu, Margaret L. Kern, John A. Johnson, Richard Holden, Fabian Braesemann

This study explores the relationship between personality diversity and national economic performance, introducing the Global Personality Diversity Index (${\Psi}$-GPDI) as a novel metric. Leveraging a dataset of 760,242 individuals across 135 countries, we quantify within-country diversity based on the Big Five personality traits. Our findings reveal that personality diversity accounts for 19.9% of the variance in GDP per capita and provides an additional 2.8% explanatory power beyond institutional quality and immigration, underscoring its unique contribution to economic vitality. Through multi-factor analysis, we demonstrate how personality diversity complements existing economic frameworks, offering actionable insights for policymakers seeking to enhance innovation, productivity, and resilience. This research positions psychological diversity as a critical yet under explored factor in driving economic growth, bridging the fields of psychology and economics.

📄 PDF Abstract BibTeX arXiv:2503.19388

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