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Noncognitive skills in economics: Models, measurement, and empirical evidence

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  • Thiel, Hendrik
  • Thomsen, Stephan L.

Abstract

There is an increasing economic literature considering personality traits as a source of individual differences in labor market productivity and other outcomes. This paper provides an overview on the role of these skills with a particular focus on measurement and estimation. Based on the relevant literature from different disciplines, common psychometric measures used to assess personality are discussed and critical assumptions for their applications are highlighted. Moreover, we report and describe ideas of recent research that aims at incorporating personality traits into economic models of decision making. Based on these foundations, the main results of the empirical literature regarding noncognitive skills are summarized. Finally, we provide a brief guide to econometric analysis with consideration of common econometric pitfalls that evolve in empirical analysis of personality traits and review possible solutions.

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Bibliographic Info

Article provided by Elsevier in its journal Research in Economics.

Volume (Year): 67 (2013)
Issue (Month): 2 ()
Pages: 189-214

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Handle: RePEc:eee:reecon:v:67:y:2013:i:2:p:189-214

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Web page: http://www.elsevier.com/locate/inca/622941

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Keywords: Noncognitive skills; Personality; Human capital formation; Psychometric measures;

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References

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  1. Weekly Wisdom Roundup # 57 (Weeklong Reading For The Smarter People)
    by Miguel in Simoleon Sense on 2009-12-21 02:39:20
  2. Non-cognitive skills
    by Kevin Denny in Geary Behaviour Centre on 2009-12-20 16:05:00
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Cited by:
  1. Hussey, Andrew, 2011. "The effect of ethics on labor market success: Evidence from MBAs," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 168-180.

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