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The Creativity Premium

David Gill () and Victoria Prowse
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David Gill: Purdue University

No 14421, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Success in life increasingly depends on key skills that allow people to thrive in education, the labor market, and their interactions with others. In this paper, we emphasize creativity as a key skill that is essential to open-ended problem solving and resistant to automation. We use rich longitudinal data to study the relationship between people's creativity measured in childhood and their individual attributes and life outcomes. We find that childhood creativity predicts labor market and educational success: more creative individuals earn more during the course of their careers, work in higher occupational categories, and reach higher levels of educational attainment. Our analysis of attributes further suggests that creative individuals have a package of practical skills that allows them to thrive in work environments where learning from experience is important. We combine insights from our findings with evidence from psychology to propose creativity-improving interventions that could lead to substantial economic benefits.

Keywords: creativity; skills; life outcomes; children; longitudinal; labor market; wages; earnings; occupational category; educational attainment; practical skills; experience; cognitive ability; human capital (search for similar items in EconPapers)
JEL-codes: D91 J24 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2021-05
New Economics Papers: this item is included in nep-lma and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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