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. Ability measured at an early age is not influenced by the individual’s choices of schooling and other circumstances. 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 Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 9208.
Length: 44 pages
Date of creation: 01 Mar 2008
Date of revision:
Cognitive ability; life-cycle; earnings; IQ;
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.
- Falch , Torberg & Sandgren Massih, Sofia, 2010. "The effect of early cognitive ability on earnings over the life-cycle," Working Paper Series, Center for Labor Studies 2010:2, Uppsala University, Department of Economics.
- 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-2008-03-25 (All new papers)
- NEP-CBE-2008-03-25 (Cognitive & Behavioural Economics)
- NEP-EDU-2008-03-25 (Education)
- NEP-LAB-2008-03-25 (Labour Economics)
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, 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.
- Haegeland, T. & Klette, T.J. & Salvanes, K.G., 1999. "Declining Returns to Education in NOrway? Comparing Estimates Across Cohorts, Sectors and Over Time," Papers 14/99, Norwegian School of Economics and Business Administration-.
- Torberg Falch & Sofia Sandgren Massih, 2011.
"The Effect Of Education On Cognitive Ability,"
Western Economic Association International, vol. 49(3), pages 838-856, 07.
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