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Cognitive Abilities and Earnings – First Evidence for Germany

  • Anger, Silke
  • Heineck, Guido

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.

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File URL: http://econstor.eu/bitstream/10419/68493/1/Anger_2010_Cognitive-Abilities-Earnings.pdf
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Article provided by ZBW - German National Library of Economics in its journal EconStor Open Access Articles.

Volume (Year): (2010)
Issue (Month): ()
Pages: 699-702

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Handle: RePEc:zbw:espost:68493
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  1. Cameron, Stephen V & Heckman, James J, 1993. "The Nonequivalence of High School Equivalents," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 1-47, January.
  2. Jeffrey S. Zax & Daniel I. Rees, 2002. "IQ, Academic Performance, Environment, and Earnings," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 600-616, November.
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  7. Murnane, Richard J & Willett, John B & Levy, Frank, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 251-66, May.
  8. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," NBER Working Papers 12006, National Bureau of Economic Research, Inc.
  9. Sanders Korenman & Christopher Winship, 1995. "A Reanalysis of The Bell Curve," NBER Working Papers 5230, National Bureau of Economic Research, Inc.
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  11. Bronars, Stephen G. & Oettinger, Gerald S., 2006. "Estimates of the return to schooling and ability: evidence from sibling data," Labour Economics, Elsevier, vol. 13(1), pages 19-34, February.
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