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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, ZBW - German National Library of Economics, pages 699-702.
  • Handle: RePEc:zbw:espost:68493
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. Ma. Cecilia Calderón & John Hoddinott, 2011. "The Inter-Generational Transmission of Cognitive Abilities in Guatemala," Research Department Publications 4722, Inter-American Development Bank, Research Department.
    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. 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.
    6. Anger, Silke, 2011. "The Intergenerational Transmission of Cognitive and Non-Cognitive Skills During Adolescence and Young Adulthood," IZA Discussion Papers 5749, Institute for the Study of Labor (IZA).
    7. Calero, Carla & Corseuil, Carlos Henrique & Gonzales, Veronica & Kluve, Jochen & Soares, Yuri, 2014. "Can Arts-Based Interventions Enhance Labor Market Outcomes among Youth? Evidence from a Randomized Trial in Rio de Janeiro," IZA Discussion Papers 8210, Institute for the Study of Labor (IZA).
    8. repec:zbw:rwirep:0486 is not listed on IDEAS
    9. 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.
    10. Hüttner, Frank & Sunder, Marco, 2011. "Decomposing R2 with the Owen value," Working Papers 100, University of Leipzig, Faculty of Economics and Management Science.
    11. Calero, Carla & Gonzales, Veronica & Soares, Yuri & Kluve, Jochen & Corseuil, Carlos Henrique, 2014. "Can Arts-Based Interventions Enhance Labor Market Outcomes among Youth? Evidence from a Randomized Trial in Rio de Janeiro," Ruhr Economic Papers 486, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    Keywords

    Cognitive abilities; earnings regressions; returns to education; ability bias;

    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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