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Leadership Skills and Wages

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

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Abstract

American business seems to be infatuated with its workers’ "leadership" skills. 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 from four percent for a broad definition of leadership in 1971 to twenty-four percent for a narrow definition in 1992, 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 other jobs. We find evidence that leadership skill has a component that is determined before high school, but also find evidence that it is "teachable".

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 482.

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Length: 54 pages
Date of creation: Apr 2002
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Handle: RePEc:iza:izadps:dp482

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Related research
Keywords: education; leadership; wages; ability;

Other versions of this item:

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
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  5. 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)
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  9. 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)
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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!]
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  3. Naci Mocan & Erdal Tekin, 2006. "Ugly Criminals," IZA Discussion Papers 2048, Institute for the Study of Labor (IZA). [Downloadable!]
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  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!]
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  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. 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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  13. 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!]
  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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