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Interpersonal Styles and Labor Market Outcomes

Author Info

Listed author(s):
  • Weinberg, Bruce A.

    ()

    (Ohio State University and NBER)

  • Borghans, Lex

    ()

    (ROA, University of Maastricht)

  • Weel, Bas ter

    ()

    (UNU-MERIT)

Abstract

This paper develops a framework to understand the role of interpersonal interactions in the labor market including task assignment and wages. Effective interpersonal interactions involve caring, to establish cooperation, and at the same time directness, to communicate in an unambiguous way. The ability to perform these tasks varies with personality and the importance of these tasks varies across jobs. An assignment model shows that people are most productive in jobs that match their style and earn less when they have to shift to other jobs. An oversupply of one attribute relative to the other reduces wages for people who are better with the attribute in greater supply. We present evidence that youth sociability affects job assignment in adulthood. The returns to interpersonal interactions are consistent with the assignment model.

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File URL: http://www.merit.unu.edu/publications/wppdf/2006/wp2006-045.pdf
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Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 045.

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Date of creation: 2006
Handle: RePEc:unm:unumer:2006045
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Keywords: Interpersonal Interactions; Wage Level; Wage Structure;

Other versions of this item:

Find related papers by JEL classification:
  • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
  • 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

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References listed on IDEAS
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  1. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, Elsevier.
  2. Lex Borghans & Huub Meijers & Bas Ter Weel, 2008. "The Role Of Noncognitive Skills In Explaining Cognitive Test Scores," Economic Inquiry, Western Economic Association International, vol. 46(1), pages 2-12, 01.
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  7. George J. Mailath & Andrew Postlewaite, 2006. "Social Assets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1057-1091, November.
    • George J. Mailath & Andrew Postlewaite, 2002. "Social Assets," PIER Working Paper Archive 06-003, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 04 Jun 2004.
    • George J. Mailath & Andrew Postlewaite, 2002. "Social Assets," PIER Working Paper Archive 04-025, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 04 Jun 2004.
  8. Green, Francis & McIntosh, Steven, 2001. "The intensification of work in Europe," Labour Economics, Elsevier, vol. 8(2), pages 291-308, May.
  9. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-880, June.
  10. Dora L. Costa & Matthew E. Kahn, 2003. "Cowards and Heroes: Group Loyalty in the American Civil War," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 519-548.
  11. Mueller, Gerrit & Plug, Erik, 2004. "Estimating the Effect of Personality on Male-Female Earnings," IZA Discussion Papers 1254, Institute for the Study of Labor (IZA).
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  14. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
  15. Randall K. Filer, 1983. "Sexual Differences in Earnings: The Role of Individual Personalities and Tastes," Journal of Human Resources, University of Wisconsin Press, vol. 18(1), pages 82-99.
  16. Kuhn, Peter J. & Weinberger, Catherine, 2002. "Leadership Skills and Wages," IZA Discussion Papers 482, Institute for the Study of Labor (IZA).
  17. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
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  19. repec:dau:papers:123456789/6486 is not listed on IDEAS
  20. Carmit Segal, 2006. "Motivation, test scores and economic success," Economics Working Papers 1124, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2008.
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