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

Author

Listed:
  • Philippe Aghion

    (CdF (institution) - Collège de France, INSEAD - Institut Européen d'administration des Affaires, LSE - London School of Economics and Political Science, CEPR - Center for Economic Policy Research, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris)

  • Antonin Bergeaud

    (HEC Paris - Ecole des Hautes Etudes Commerciales, CEPR - Center for Economic Policy Research)

  • Richard Blundell

    (UCL - University College London [UCL], Institute for Fiscal Studies, TSE-R - TSE-R Toulouse School of Economics – Recherche - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEPR - Center for Economic Policy Research)

  • Rachel Griffith

    (University of Manchester [Manchester], Institute for Fiscal Studies, CEPR - Center for Economic Policy Research)

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

  • Philippe Aghion & Antonin Bergeaud & Richard Blundell & Rachel Griffith, 2026. "Wage growth of less educated workers: the importance of social skills," PSE-Ecole d'économie de Paris (Postprint) halshs-05837077, HAL.
    • Handle: RePEc:hal:pseptp:halshs-05837077
    DOI: 10.1111/1475-5890.70036
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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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