Strategic Thinking Skills: A Key to Collective Economic Success

Syngjoo Choi, Seonghoon Kim and Wooyoung Lim

American Economic Journal: Microeconomics, 2025, vol. 17, issue 2, 214-40

Abstract: We conduct a large-scale experiment to measure elementary aspects of strategic thinking skills and their linkage to labor market outcomes. Two incentivized measures of higher-order rationality and backward induction are developed. Males' (females') strategic thinking skills are positively (negatively) associated with individual labor income. However, among married individuals, strategic thinking skills are significantly and positively associated with their household labor income regardless of gender, highlighting the importance of strategic thinking skills for collective economic success. We argue that the intrahousehold channels encompassing collective labor supply with home-to-workplace spillover and marriage assortative matching offer the most plausible explanation for our findings.

JEL-codes: D91 J16 J22 J24 J31 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1257/mic.20220259

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