Cognitive abilities and earnings - first evidence for Germany

Silke Anger and Guido Heineck

Applied Economics Letters, 2010, vol. 17, issue 7, 699-702

Abstract: We provide first evidence on the relationship between cognitive abilities and earnings in Germany using data from the German Socio-Economic Panel (SOEP) Study. The estimates suggest that mechanics abilities are positively related to wages of West German workers, even when educational attainment is controlled for. Pragmatics of cognition are not related to earnings. In line with studies for other countries, we find that ability and education are inseparable determinants of earnings.

Date: 2010
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DOI: 10.1080/13504850802297855

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