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The returns to cognitive abilities and personality traits in Germany

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  • Heineck, Guido
  • Anger, Silke

Abstract

We provide the first joint evidence on the relationship between individuals' cognitive abilities, their personality and earnings for Germany. Using data from the German Socio-Economic Panel Study, we employ scores from an ultra-short IQ-test and a set of measures of personality traits, namely locus of control, reciprocity and all basic items from the Five Factor Personality Inventory. Our estimates suggest a positive effect of so-called fluid intelligence or speed of cognition on males' wages only. Findings for personality traits are more heterogeneous. However, there is a robust wage penalty for an external locus of control for both men and women.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 17 (2010)
Issue (Month): 3 (June)
Pages: 535-546

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Handle: RePEc:eee:labeco:v:17:y:2010:i:3:p:535-546

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Cognitive abilities Personality traits Five Factor Model Locus of control Reciprocity Wages;

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