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Cognitive Abilities and Earnings – First Evidence for Germany

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  • Anger, Silke
  • Heineck, Guido

Abstract

We provide first evidence on the relationship between cognitive abilities and earnings in Germany using data from the German Socio-Economic Panel (SOEP) Study. The estimates suggest that mechanics abilities are positively related to wages of West German workers, even when educational attainment is controlled for. Pragmatics of cognition are not related to earnings. In line with studies for other countries, we find that ability and education are inseparable determinants of earnings.

Suggested Citation

  • Anger, Silke & Heineck, Guido, 2010. "Cognitive Abilities and Earnings – First Evidence for Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 17(7), pages 699-702.
    • Handle: RePEc:zbw:espost:68493
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    Cited by:

    1. Calero, Carla & Gonzalez Diez, Veronica & Soares, Yuri S.D. & Kluve, Jochen & Corseuil, Carlos Henrique, 2017. "Can arts-based interventions enhance labor market outcomes among youth? Evidence from a randomized trial in Rio de Janeiro," Labour Economics, Elsevier, vol. 45(C), pages 131-142.
    2. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39.
    3. Jung, Juergen & Hall, Diane M. Harnek & Rhoads, Thomas, 2013. "Does the availability of parental health insurance affect the college enrollment decision of young Americans?," Economics of Education Review, Elsevier, vol. 32(C), pages 49-65.
    4. Till Kaiser, 2012. "Haben gebildetere Mütter gewissenhaftere Kinder?: Soziale Herkunft und Persönlichkeitsentwicklung im frühkindlichen Alter," SOEPpapers on Multidisciplinary Panel Data Research 509, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Vincent VANDENBERGHE, 2021. "Health, cognition and work capacity beyond the age of 50: International evidence on the extensive and intensive margins of work," International Labour Review, International Labour Organization, vol. 160(2), pages 271-310, June.
    6. Silke Anger & Guido Heineck, 2010. "Do smart parents raise smart children? The intergenerational transmission of cognitive abilities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 1105-1132, June.
    7. Tushar Bharati & Thea Harpley Green, 2021. "Age at school transition and children’s cognitive and non-cognitive outcomes," Economics Discussion / Working Papers 21-06, The University of Western Australia, Department of Economics.
    8. Collischon, Matthias, 2016. "Personality, ability, marriage and the gender wage gap: Evidence from Germany," FAU Discussion Papers in Economics 08/2016, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    9. Silke Anger, 2011. "The Intergenerational Transmission of Cognitive and Non-Cognitive Skills During Adolescence and Young Adulthood," Working Papers 2011-023, Human Capital and Economic Opportunity Working Group.
    10. Calderón, María Cecilia & Hoddinott, John, 2011. "The Inter-Generational Transmission of Cognitive Abilities in Guatemala," IDB Publications (Working Papers) 3105, Inter-American Development Bank.
    11. Jessica Ordemann & Friedhelm Pfeiffer, 2022. "The evolution of educational wage differentials for women and men in Germany, from 1996 to 2019," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 56(1), pages 1-12, December.
    12. Janzen, Katrin & Panitz, Robert & Glückler, Johannes, 2022. "Education premium and the compound impact of universities on their regional economy," Research Policy, Elsevier, vol. 51(1).
    13. Vandenberghe, Vincent, 2019. "Health, Cognition and Work Capacity Beyond the Age of 50," GLO Discussion Paper Series 295, Global Labor Organization (GLO).
    14. Carla Calero & Veronica Gonzales & Yuri Soares & Jochen Kluve & Carlos Henrique Corseuilt, 2014. "Can Arts-Based Interventions Enhance Labor Market Outcomes among Youth? Evidence from a Randomized Trial in Rio de Janeiro," Ruhr Economic Papers 0486, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    15. repec:zbw:rwirep:0486 is not listed on IDEAS
    16. Hüttner, Frank & Sunder, Marco, 2011. "Decomposing R2 with the Owen value," Working Papers 100, University of Leipzig, Faculty of Economics and Management Science.

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    More about this item

    Keywords

    Cognitive abilities; earnings regressions; returns to education; ability bias;
    All these keywords.

    JEL classification:

    • 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
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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