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The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment

Erik Lindqvist () and Roine Vestman

American Economic Journal: Applied Economics, 2011, vol. 3, issue 1, 101-28

Abstract: We use data from the Swedish military enlistment to assess the importance of cognitive and noncognitive ability for labor market outcomes. The measure of noncognitive ability is based on a personal interview conducted by a psychologist. We find strong evidence that men who fare poorly in the labor market—in the sense of unemployment or low annual earnings—lack noncognitive rather than cognitive ability. However, cognitive ability is a stronger predictor of wages for skilled workers and of earnings above the median. (JEL J24, J31, J45)

JEL-codes: J24 J31 J45 (search for similar items in EconPapers)
Date: 2011
Note: DOI: 10.1257/app.3.1.101
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American Economic Journal: Applied Economics is currently edited by Alexandre Mas

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