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Leadership Skills and Wages

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Author Info
Peter Kuhn (University of California, Santa Barbara)
Catherine Weinberger (University of California, Santa Barbara)

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Abstract

American business is devoting a growing share of resources to identifying and developing a worker characteristic called ³leadership skill². Is there such a thing, and is it rewarded in labor markets? Using the Project Talent, NLS72 and High School and Beyond datasets, we show that men who occupied leadership positions in high school earn more as adults, even when cognitive skills are held constant. The pure leadership-wage effect varies, depending on definitions and time period, from four percent to twenty-four percent, and appears to have increased over time. High-school leaders are more likely to occupy managerial occupations as adults, and leadership skills command a higher wage premium within managerial occupations than in other jobs. We find evidence that leadership skill has a component that is determined before high school, but also find evidence suggesting that it is ³teachable².

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Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number 2-02.

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Date of creation: 01 Mar 2003
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Handle: RePEc:cdl:ucsbec:2-02

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Related research
Keywords: Leadership; skills; wages;

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  2. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-94, December. [Downloadable!] (restricted)
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  3. Farber, Henry S & Gibbons, Robert, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1007-47, November. [Downloadable!] (restricted)
  4. John M. Barron & Bradley T. Ewing & Glen R. Waddell, 2000. "The Effects Of High School Athletic Participation On Education And Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 409-421, August. [Downloadable!] (restricted)
  5. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn. [Downloadable!] (restricted)
  6. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  7. David H. Autor & Frank Levy & Richard J. Murnane, 2001. "The Skill Content of Recent Technological Change: An Empirical Exploration," NBER Working Papers 8337, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Eide, Eric R. & Ronan, Nick, 2001. "Is participation in high school athletics an investment or a consumption good?: Evidence from high school and beyond," Economics of Education Review, Elsevier, vol. 20(5), pages 431-442, October. [Downloadable!] (restricted)
  9. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Oxford University Press, vol. 35(4), pages 815-29, October.
  11. Murphy, Kevin J., 1999. "Executive compensation," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 38, pages 2485-2563 Elsevier. [Downloadable!] (restricted)
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  1. Eriksson, Tor & Bratsberg, Bernt & Raaum, Oddbjørn, 2005. "Earnings persistence across generations: Transmission through health?," Memorandum 35/2005, Oslo University, Department of Economics. [Downloadable!]
  2. Borghans, Lex & ter Weel, Bas & Weinberg, Bruce A., 2005. "People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups," IZA Discussion Papers 1494, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Naci Mocan & Erdal Tekin, 2006. "Ugly Criminals," IZA Discussion Papers 2048, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Myoung-Jae Lee & Yip Chun Seng, 2005. "Non-market Leadership Experience and Labor Market Success: Evidence From Military Rank," Working Papers 12-2005, Singapore Management University, School of Economics. [Downloadable!]
  5. Weinberg, Bruce A. & Borghans, Lex & Weel, Bas ter, 2006. "Interpersonal Styles and Labor Market Outcomes," UNU-MERIT Working Paper Series 045, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
    Other versions:
  6. repec:ese:iserwp: is not listed on IDEAS
  7. Naci H. Mocan & Erdal Tekin, 2009. "Obesity, Self-esteem and Wages," NBER Working Papers 15101, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Dahlia K. Remler & Elda Pema, 2009. "Why do Institutions of Higher Education Reward Research While Selling Education?," NBER Working Papers 14974, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Víctor Elías & Lucas Ronconi & Julio Elías, 2007. "Discriminación y redes sociales: Popularidad entre los estudiantes de bachillerato en Argentina," RES Working Papers 3239, Inter-American Development Bank, Research Department. [Downloadable!]
  10. Roy Wada & Erdal Tekin, 2007. "Body Composition and Wages," NBER Working Papers 13595, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Nils Braakmann, 2009. "The Role of Psychological Traits for the Gender Gap in Full-time Employment and Wages: Evidence from Germany," SOEPpapers 162, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  12. Olaf Hübler, 2006. "The Nonlinear Link between Height and Wages: An Empirical Investigation," IZA Discussion Papers 2394, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Kooreman, Peter, 2003. "Time, Money, Peers, and Parents: Some Data and Theories on Teenage Behavior," IZA Discussion Papers 931, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. Víctor Elías & Lucas Ronconi & Julio Elías, 2007. "Discrimination and Social Networks: Popularity among High School Students in Argentina," RES Working Papers 3238, Inter-American Development Bank, Research Department. [Downloadable!]
  15. Aurora A.C. Teixeira & Rosa Portela Forte, 2009. "Unbounding entrepreneurial intents of university students: a multidisciplinary perspective," FEP Working Papers 322, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
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