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Sociologists have only quite recently revived studying the implications of aspects of personality for life chances. This article investigates relationship between the psychological construct of Core Self Evaluations (CSE) – self-perceptions of ability and efficacy – and earnings in the United Kingdom using the British Household Panel Survey. Results show that low CSE is associated with a pay penalty; whereas high CSE has surprisingly no effect. We demonstrate that the relationship between low CSE and earnings are likely due to poorer performance at work and inferior negotiating abilities, especially when pay is individually-negotiated. Results also demonstrate that increased earnings can improve CSE for those with initially low CSE, indicating a reciprocal relationship.