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Wage growth of less educated workers: the importance of social skills

Author

Listed:
  • Aghion, Philippe
  • Bergeaud, Antonin
  • Blundell, Richard
  • Griffith, Rachel

Abstract

We use matched employee–employer data from the UK to investigate the importance of social skills – in particular, teamwork and communication with co-workers – as a driver of wage growth for workers with lower formal education. We find that in social skill tasks, a significant fraction of less educated workers enjoy wage progression with tenure, and higher returns in firms with more educated co-workers. We rationalise these dynamics through a model in which social skills – initially opaque to both employee and employer – are learned about over time through complementarity with co-workers.

Suggested Citation

  • Aghion, Philippe & Bergeaud, Antonin & Blundell, Richard & Griffith, Rachel, 2026. "Wage growth of less educated workers: the importance of social skills," LSE Research Online Documents on Economics 141241, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:141241
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    File URL: https://researchonline.lse.ac.uk/id/eprint/141241/
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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