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Interpersonal Styles and Labor Market Outcomes

Author Info

  • 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
Date of revision:
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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