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Swedish evidence on the impact of cognitive and non-cognitive ability on earnings – an extended pre-market factor approach

Johnny Zetterberg ()
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Johnny Zetterberg: IFAU - Institute for Labour Market Policy Evaluation, Postal: P O Box 513, SE-751 20 Uppsala, Sweden

No 2005:16, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper investigates the impact on earnings of non-cognitive ability, measured in terms of individuals’ 'self-esteem' on earnings. Starting with the pre-market factor approach suggested by Neal & Johnson (1996) a main finding is that measures of relative self-esteem along with cognitive ability are positively correlated with earnings. The analysis also reveals that the returns to cognitive and non-cognitive ability vary over the earnings-distribution: the returns are larger at higher levels of earnings than at low levels. While qualitatively robust, the effects decrease in magnitude when an extended version of the pre-market factor model is used.

Keywords: Incentive-influencing preferences; cognitive ability; non-cognitive ability; relative and absolute self-esteem; earnings distribution (search for similar items in EconPapers)
JEL-codes: J31 M54 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2005-06-21
New Economics Papers: this item is included in nep-bec and nep-cbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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