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Beyond IQ: The Rising Value of Extraversion

Author

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  • Ramin Izadi
  • Joonas Tuhkuri

Abstract

We analyze trends in labor market returns to psychological traits using data from half a million Finnish men from 2001 to 2015. Cognitive skills’ value declined, while noncognitive skills’ value increased. Our novel findings show that extraversion drives this rise, while conscientiousness remains stable. Extraversion’s rising returns are most pronounced for lower earners and those on the employment margin. These traits predict different labor market paths: extraversion predicts lower education and more work experience, while cognitive ability and conscientiousness lead to higher education and high-paying jobs.

Suggested Citation

  • Ramin Izadi & Joonas Tuhkuri, 2026. "Beyond IQ: The Rising Value of Extraversion," Journal of Labor Economics, University of Chicago Press, vol. 44(3), pages 925-966.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/733226
    DOI: 10.1086/733226
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    Cited by:

    1. Lorenzo Navarini, 2026. "Changes in Returns to Multidimensional Skills across Cohorts," RFBerlin Discussion Paper Series 26170, ROCKWOOL Foundation Berlin (RFBerlin).

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