The effect of early cognitive ability on earnings over the life-cycle
AbstractThis paper utilizes information on cognitive ability at age ten and earnings information from age 20 to 65 to estimate the return to ability over the life-cycle. Cognitive ability measured at an early age is not influenced by the individual’s choices of schooling. We find that most of the unconditional return to early cognitive ability goes through educational choice. The conditional return is increasing for low levels of experience and non-increasing for experience above about 15-25 years. The return is similar for men and women, and highest for individuals with academic education. Only a small part of the return can be explained by higher probability to have a supervisory position.
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Bibliographic InfoPaper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Labor Studies with number 2010:2.
Length: 40 pages
Date of creation: 19 Jan 2010
Date of revision:
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Cognitive ability; life-cycle; earnings; IQ; employer learning *;
Other versions of this item:
- Torberg Falch & Sofia Sandgren Massih, 2012. "The Effect of Early Cognitive Ability on Earnings Over the Life-Cycle," LABOUR, CEIS, vol. 26(3), pages 287-312, 09.
- Torberg Falch & Sofia Sandgren, 2008. "The effect of early cognitive ability on earnings over the life-cycle," Working Paper Series 9208, Department of Economics, Norwegian University of Science and Technology.
- I29 - Health, Education, and Welfare - - Education - - - Other
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-23 (All new papers)
- NEP-CBE-2010-12-23 (Cognitive & Behavioural Economics)
- NEP-EDU-2010-12-23 (Education)
- NEP-HRM-2010-12-23 (Human Capital & Human Resource Management)
- NEP-LAB-2010-12-23 (Labour Economics)
- NEP-NEU-2010-12-23 (Neuroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Haegeland, T. & Klette, T.J. & Salvanes, K.G., 1999.
"Declining Returns to Education in NOrway? Comparing Estimates Across Cohorts, Sectors and Over Time,"
14/99, Norwegian School of Economics and Business Administration-.
- Haegeland, Torbjorn & Klette, Tor Jakob & Salvanes, Kjell G, 1999. " Declining Returns to Education in Norway? Comparing Estimates across Cohorts, Sectors and Over Time," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 555-76, December.
- Torberg Falch & Sofia Sandgren, 2006.
"The effect of education on cognitive ability,"
Working Paper Series
7306, Department of Economics, Norwegian University of Science and Technology.
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