Do Shocks and Environmental Factors Shape Personality Traits? Evidence from the Ultra-Poor in Uganda

Abstract

Personality characteristics and non-cognitive skills are key determinants of decision-making and economic outcomes. While personality is commonly believed to be stable after age 30, evidence suggests that significant changes in occupational or social roles, or exposure to family or health shocks, can have effects on personality traits. In this paper, we study the short-term effects of two kinds of shocks on measured personality traits among young adults from ultra-poor households in Uganda. In particular, we examine the short-term impacts of (i) a randomized anti-poverty program and (ii) environmental changes—exposure to drought, high temperatures, and wind—on personality traits. We find significant differences in measured personality traits across these factors, in particular among food insecure individuals. These results suggest that economic shocks and environmental factors may have an effect on the non-cognitive skills among young ultra-poor adults. On the other hand, our results also suggest that caution is warranted when using these tools used to measure personality traits in such rural, low-income settings.