Article,

The returns to cognitive abilities and personality traits in Germany

, and .
Labour Economics, 17 (3): 535-546 (2010)
DOI: 10.1016/j.labeco.2009.06.001

Abstract

We provide the first joint evidence on the relationship between individuals' cognitive abilities, their personality and earnings for Germany. Using data from the German Socio-Economic Panel Study, we employ scores from an ultra-short IQ-test and a set of measures of personality traits, namely locus of control, reciprocity and all basic items from the Five Factor Personality Inventory. Our estimates suggest a positive effect of so-called fluid intelligence or speed of cognition on males' wages only. Findings for personality traits are more heterogeneous. However, there is a robust wage penalty for an external locus of control for both men and women.

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