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Human capital and leadership: the impact of cognitive and noncognitive abilities

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  • Tingting Tong
  • Haizheng Li
  • Samuel Greiff

Abstract

We conduct an economic analysis about the impact of human capital on an individual’s potential of becoming a leader based on data from the Programme for the International Assessment of Adult Competencies Survey (PIAAC). Our human capital indicators include not only traditional measures such as education and experience, but also various measures of cognitive and noncognitive ability. Our cognitive ability measures include numeracy, literacy, and problem solving abilities, and noncognitive ability measures include perseverance, motivation to learn, and social trust. We specifically investigate the effect of measurement error and reverse causality on the estimation results. We find that problem-solving ability is the most important in affecting leadership among cognitive ability measures, and perseverance shows the strongest impact among noncognitive ability measures. As a leader supervises more employees, the role of cognitive and noncognitive ability becomes more critical.

Suggested Citation

  • Tingting Tong & Haizheng Li & Samuel Greiff, 2019. "Human capital and leadership: the impact of cognitive and noncognitive abilities," Applied Economics, Taylor & Francis Journals, vol. 51(53), pages 5741-5752, November.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5741-5752
    DOI: 10.1080/00036846.2019.1619022
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    Cited by:

    1. Estrellado, Emmanuel & Charoensilp, Pimmada & Yamada, Shoko, 2023. "The effects of game-based soft skills training: A quasi-experiment with Ethiopian garment workers," International Journal of Educational Development, Elsevier, vol. 101(C).
    2. Chyul-Young Jyung & Yoowoo Lee & Sunyoung Park & Eunhye Cho & Romi Choi, 2020. "Factors Affecting Employees’ Problem-Solving Skills in Technology-Rich Environments in Japan and Korea," Sustainability, MDPI, vol. 12(17), pages 1-16, August.

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