The effect of early cognitive ability on earnings over the life-cycle

Torberg Falch and Sofia Sandgren ()
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Sofia Sandgren: Royal Institute ofTechnology, Stockholm, Sweden, and Department of Economics, Norwegian University of Science and Technology, Norway

Working Paper Series from Department of Economics, Norwegian University of Science and Technology

Abstract: This paper utilizes information on cognitive ability at age ten and earnings information from age 20 to 65 to estimate the return to ability over the life-cycle. Ability measured at an early age is not influenced by the individual’s choices of schooling and other circumstances. We find that most of the unconditional return to early cognitive ability goes through educational choice. The conditional return is increasing for low levels of experience and non-increasing for experience above about 15-25 years. The return is similar for men and women, and highest for individuals with academic education. Only a small part of the return can be explained by higher probability to have a supervisory position.

Keywords: Cognitive ability; life-cycle; earnings; IQ (search for similar items in EconPapers)
Pages: 44 pages
Date: 2008-03-01
New Economics Papers: this item is included in nep-cbe, nep-edu and nep-lab
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Citations: View citations in EconPapers (1)

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http://www.svt.ntnu.no/iso/WP/2008/1cog2a.pdf (application/pdf)

Related works:
Journal Article: The Effect of Early Cognitive Ability on Earnings Over the Life-Cycle (2012)
Working Paper: The effect of early cognitive ability on earnings over the life-cycle (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:nst:samfok:9208

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