The labor market returns to cognitive and noncognitive ability: Evidence from the swedish enlistment

American Economic Journal: Applied Economics

Volumn 3, Issue 1, 2011, Pages 101-128

  Lindqvist, Erik ^a,b   Vestman, Roine ^c  

^a STOCKHOLM SCHOOL OF ECONOMICS   (Sweden)

^b RESEARCH INSTITUTE OF INDUSTRIAL ECONOMICS IFN   (Sweden)

^c Institute for Financial Research (SIFR)   (Sweden)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79955472848     PISSN: 19457782     EISSN: 19457790     Source Type: Journal    
DOI: 10.1257/app.3.1.101     Document Type: Article

References (67)

1. Altonji, Joseph G., and Charles R. Pierret. 2001. "Employer Learning and Statistical Discrimination." Quarterly Journal of Economics, 116(1): 313-50.
2. Andersson, Jens, and Berit Carlstedt. 2003. Urval till plikttjänst. Försvarshögskolan, ILM Serie T:28. Institutionen för ledarskap och management: Karlstad, Sweden.
3. Andrisani, Paul J. 1977. "Internal-External Attitudes, Personal Initiative and The Labor Market Experience of Black and White Men." Journal of Human Resources, 12(3): 308-28.
4. Andrisani, Paul J., and Gilbert Nestel. 1976. "Internal-External Control as Contributor to and Outcome of Work Experience." Journal of Applied Psychology, 61(2): 156-65.
5. Bishop, John H. 1991. "Achievement, Test Scores, and Relative Wages." In Workers and Their Wages: Changing Patterns in the United States, ed. Marvin H. Kosters, 146-86. Washington, DC: AEI Press.
6. Björklund, Anders, Mikael Lindahl, and Erik Plug. 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data." Quarterly Journal of Economics, 121(3): 999-1028.
7. Blau, Francine D., and Lawrence M. Kahn. 2005. "Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?" Review of Economics and Statistics, 87(1): 184-93.
8. Borghans, Lex, Huub Meijers, and Bas ter Weel. 2008. "The Role of Noncognitive Skills in Explaining Cognitive Test Scores." Economic Inquiry, 46(1): 2-12.
9. Borghans, Lex, Bas ter Weel, and Bruce A. Weinberg. 2008. "Interpersonal Styles and Labor Market Outcomes." Journal of Human Resources, 43(4): 815-58.
10. Borghans, Lex, Angela Lee Duckworth, James J. Heckman, and Bas ter Weel. 2008. "The Economics and Psychology of Personality Traits." Journal of Human Resources, 43(4): 972-1059.
11. Bowles, Samuel, and Herbert Gintis. 1976. Schooling in Capitalist America: Educational Reform and the Contradictions of Economic Life. New York: Basic Books.
12. Bowles, Samuel, and Herbert Gintis. 2002. "The Inheritance of Inequality." Journal of Economic Perspectives, 16(3): 3-30.
13. Bowles, Samuel, Herbert Gintis, and Melissa Osborne. 2001a. "The Determinants of Earnings: A Behavioral Approach." Journal of Economic Literature, 39(4): 1137-76.
14. Bowles, Samuel, Herbert Gintis, and Melissa Osborne. 2001b. "Incentive-Enhancing Preferences: Personality, Behavior, and Earnings." American Economic Review, 91(2): 155-58.
15. Carlstedt, Berit. 2000. "Cognitive Abilities: Aspects of Structure, Process and Measurement." PhD diss. University of Gothenburg.
16. Carlstedt, Berit. 2009. Telephone interview by Erik Lindqvist (notes were taken at interview), November 26, Stockholm, Sweden.
17. Carneiro, Pedro, Karsten T. Hansen, and James J. Heckman. 2003. "Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice." International Economic Review, 44(2): 361-422.
18. Cawley, John, Karen Conneely, James Heckman, and Edward Vytlacil. 1996. "Cognitive Ability, Wages, and Meritocracy." National Bureau of Economic Research Working Paper 5645.
19. Cawley, John, James Heckman, and Edward Vytlacil. 2001. "Three Observations on Wages and Measured Cognitive Ability." Labour Economics, 8(4): 419-42.
20. Cesarini, David. 2010. "The Effect of Family Environment on Productive Skills, Human Capital and Lifecycle Income." In Essays on Genetic Variation and Economic Behavior by David Cesarini, PhD dissertation. Massachusetts Institute of Technology.
21. Cunha, Flavio, and James Heckman. 2007. "The Technology of Skill Formation." American Economic Review, 97(2): 31-47.
22. Cunha, Flavio, and James J. Heckman. 2008a. "Formulating, Identifying, and Estimating the Technology of Cognitive and Noncognitive Skill Formation." Journal of Human Resources, 43(4): 738-82.
23. Cunha, Flavio, and James Heckman. 2008b. "A New Framework for the Analysis of Inequality." Macroeconomic Dynamics, 12: 315-54.
24. Cunha, Flavio, James J. Heckman, Lance Lochner, and Dimitriy Masterov. 2006. "Interpreting the Evidence on Life Cycle Skill Formation." In Handbook of the Economics of Education, Vol. 1, ed. Erik Hanushek and Finis Welch, 697-812. Amsterdam: North Holland.
25. Duncan, Greg J., and James N. Morgan. 1981. "Sense of Efficacy and Subsequent Change in Earnings-A Replication." Journal of Human Resources, 16(4): 649-57.
26. Dunifon, Rachel, and Greg J. Duncan. 1998. "Long-Run Effects of Motivation on Labor-Market Success." Social Psychology Quarterly, 61(1): 33-48.
27. Edin, Per-Anders, and Peter Fredriksson. 2000. "LINDA-Longitudinal INdividual DAta for Sweden." Uppsala University Department of Economics Working Paper 2000:19.
28. Edwards, Richard C. 1976. "Individual Traits and Organizational Incentives: What Makes a 'Good' Worker?" Journal of Human Resources, 11(1): 51-68.
29. Firpo, Sergio, Nicole M. Fortin, and Thomas Lemieux. 2009. "Unconditional Quantile Regressions." Econometrica, 77(3): 953-73.
30. Freeman, Richard, and Ronald Schettkat. 2001. "Skill Compression, Wage Differentials, and Employment: Germany vs the US." Oxford Economic Papers, 53(3): 582-603.
31. Goldsmith, Arthur H., Jonathan R. Veum, and William Darity Jr. 1997. "The Impact of Psychological and Human Capital on Wages." Economic Inquiry, 35(4): 815-29.
32. Gould, Eric D. 2005. "Inequality and Ability." Labour Economics, 12(2): 169-89.
33. Grönqvist Erik, and Jonas Vlachos. 2008. "One Size Fits All? The Effects of Teacher Cognitive and Non-Cognitive Abilities on Student Achievement." Institute for Labour Market Policy Evaluation (IFAU) Working Paper 2008:25.
34. Grönqvist, Erik, Björn Öckert, and Jonas Vlachos. 2010. "The Intergenerational Transmission of Cognitive and Non-Cognitive Abilities." Unpublished.
35. Groves, Melissa Osborne. 2005. "How Important Is Your Personality? Labor Market Returns to Personality for Women in the US and UK." Journal of Economic Psychology, 26(6): 827-41.
36. Hansen, Karsten T., James J. Heckman, and Kathleen J. Mullen. 2004. "The Effect of Schooling and Ability on Achievement Test Scores." Journal of Econometrics, 121(1-2): 39-98.
37. Hanushek, Eric A., and Ludger Woessmann. 2008. "The Role of Cognitive Skills in Economic Development." Journal of Economic Literature, 46(3): 607-68.
38. Heckman, James J. 1995. "Lessons from the Bell Curve." Journal of Political Economy, 103(5): 1091-1120.
39. Heckman, James J., and Yona Rubinstein. 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program." American Economic Review, 91(2): 145-49.
40. Heckman James J., Jora Stixrud, and Sergio Urzua. 2005. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior." harrisschool.uchicago.edu/programs/.../ cognoncog_all_2005-09-22_su.pdf.
41. Heckman, James J., Jora Stixrud, and Sergio Urzua. 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior." Journal of Labor Economics, 24(3): 411-82.
42. Herrnstein, Richard J., and Charles Murray. 1994. The Bell Curve: Intelligence and Class Structure in American Life. New York: Free Press.
43. Husén, Torsten. 1941. "Militär psykologi." Ny militär tidskrift, 14(3-4): 48-52.
44. Isacsson, Gunnar. 1999. "Estimates of the Return to Schooling in Sweden from a Large Sample of Twins." Labour Economics, 6(4): 471-89.
45. Jencks, Christopher. 1979. Who Gets Ahead? The Determinants of Success in America. New York: Basic Books.
46. Kilburn, M. Rebecca, Lawrence M. Hanser, and Jacob A. Klerman. 1998. Estimating AFQT Scores for National Educational Longitudinal Study (NELS) Respondents. Santa Monica, CA: RAND.
47. Kuhn, Peter, and Catherine Weinberger. 2005. "Leadership Skills and Wages." Journal of Labor Economics, 23(3): 395-436.
48. Lazarsfeld, Paul F. 1949. "The American Soldier-An Expository Review." Public Opinion Quarterly, 13(3): 377-404.
49. Lilieblad, Barbro, and Berit Ståhlberg. 1977. Reliabilitet hos psykologiska bedömningar vid inskrivningsprövning. FOA rapport C 55011-H7. Stockholm, Sweden.
50. Lundborg, Petter, Paul Nystedt, and Dan-Olof Rooth. 2009. "The Height Premium in Earnings: The Role of Physical Capacity and Cognitive and Non-Cognitive Skills." Institute for the Study of Labor (IZA) Discussion Paper 4266.
51. McIntosh, Steven, and Anna Vignoles. 2001. "Measuring and Assessing the Impact of Basic Skills on Labour Market Outcomes." Oxford Economic Papers, 53(3): 453-81.
52. Mueller, Gerrit, and Erik Plug. 2006. "Estimating the Effect of Personality on Male and Female Earnings." Industrial and Labor Relations Review, 60(1): 3-22.
53. Murnane, Richard J., John B. Willett, and Frank Levy. 1995. "The Growing Importance of Cognitive Skills in Wage Determination." Review of Economics and Statistics, 77(2): 251-66.
54. Murnane, Richard J., John B. Willett, Jay M. Braatz, and Yves Duhaldeborde. 2001. "Do Different Dimensions of Male High School Students' Skills Predict Labor Market Success a Decade Later? Evidence from the NLSY." Economics of Education Review, 20(4): 311-20.
55. Neal, Derek A., and William R. Johnson. 1996. "The Role of Premarket Factors in Black-White Wage Differences." Journal of Political Economy, 104(5): 869-95.
56. Nickell, Stephen. 2004. "Poverty and Worklessness in Britain." Economic Journal, 114(494): C1-25.
57. Nordin, Martin. 2008. "Ability and Rates of Return to Schooling-Making Use of the Swedish Enlistment Battery Test." Journal of Population Economics, 21(3): 703-17.
58. Olnek, Michael R., and David B. Bills. 1979. "What Makes Sammy Run? An Empirical Assessment of the Bowles-Gintis Correspondence Theory." University of Wisconsin-Madison Institute for Research on Poverty Discussion Paper 574-79.
59. Rotter, Julian B. 1966. "Generalized Expectancies of Internal versus External Control of Reinforcements." Psychological Monographs, 80(1): 1-28.
60. Schmidt, Frank L., and John Hunter. 2004. "General Mental Ability in the World of Work: Occupational Attainment and Job Performance." Journal of Personality and Social Psychology 86(1): 162-73.
61. Segal, Carmit. 2008. "Motivation, Test Scores, and Economic Success." Universitat Pompeu Fabra Economics Working Paper 1124.
62. Segal, Carmit. 2009. "Misbehavior, Education and Labor Market Outcomes." http://www.econ.upf.edu/~segal/MisbehaviorFeb09.pdf.
63. Skedinger, Per. 2010. "Sweden: A Minimum Wage Model in Need of Modification." In The Minimum Wage Revisited in the Enlarged EU, ed. Daniel Vaughan-Whitehead, 367-406. Cheltenham, UK: Edward Elgar.
64. Spearman, C. 1904. "'General Intelligence,' Objectively Determined and Measured." American Journal of Psychology, 15(2): 201-92.
65. Turner, Charles F., and Daniel C. Martinez. 1977. "Socioeconomic Achievement and the Machiavellian Personality." Sociometry, 40(4): 325-36.
66. Francesco Drago. 2011. Self-esteem and earnings. Journal of Economic Psychology. [CrossRef]
67. Dan-Olof Rooth. 2010. Work out or out of work - The labor market return to physical fitness and leisure sports activities. Labour Economics.