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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 ZBW - German National Library of Economics in its journal EconStor Open Access Articles.

Volume (Year): (2010-06)
Issue (Month): ()
Pages: 535-546

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Handle: RePEc:zbw:espost:68593

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

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