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2008 Journal of Human Resources
Abstract: This paper estimates models of the evolution of cognitive and noncognitive skills and explores the role of family environments in shaping these skills at different stages of the life cycle of the child. Central to this analysis is identification of the technology of skill formation. We estimate a dynamic factor model to solve the problem of endogeneity of inputs and multiplicity of inputs relative to instruments. We identify the scale of the factors by estimating their effects on adult outcomes. In this fashion we avoid reliance on test scores and changes in test scores that have no natural metric. Parental investments are generally more effective in raising noncognitive skills. Noncognitive skills promote the formation of cognitive skills but, in most specifications of our model, cognitive skills do not promote the formation of noncognitive skills. Parental inputs have different effects at different stages of the child's life cycle with cognitive skills affected more at early ages and noncognitive skills affected more at later ages.
2008 Journal of Human Resources
Abstract: This paper investigates the determinants and malleability of noncognitive skills. Using data on boys from the National Education Longitudinal Survey, I focus on youth behavior in the classroom as a measure of noncognitive skills. I find that student behavior during adolescence is persistent. The variation in behavior can be attributed to unobserved individual heterogeneity. Family and school characteristics, as well as the incentives for good behavior provided at home and in school, are important determinants of behavior. Neither the cross-sectional variation in behavior nor the variation over time in behavior can, however, be attributed to these covariates.
2008 Journal of Human Resources
Abstract: This paper develops a framework of the role of interpersonal interactions in the labor market. Effective interpersonal interactions involve caring and directness. 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. 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.
2008 Journal of Human Resources
Abstract: This paper tests a central implication of the theory of equalizing differences, that workers sort into jobs with different attributes based on their preferences. We present evidence from four new time-use data sets for the United States and France suggesting that workers who are more gregarious, as revealed by their behavior when they are not working, tend to be employed in jobs that involve more social interactions. We also find that workers report substantially higher levels of job satisfaction and net affect while at work if their jobs entail frequent interactions with coworkers and other desirable working conditions.
2008 Journal of Human Resources
Abstract: Using two single-cohort longitudinal surveys, the NLS72 and the NELS88, I investigate the impact of four noncognitive traits—self-esteem, external locus of control, the importance of money/work and the importance of people/family—on wages and on the gender wage gap among these young workers. I find that gender differences in these noncognitive factors, especially the importance of money/work, have a modest but significant role in accounting for the gender wage gap. Methodologically, this paper proposes a correction to the Oaxaca-Blinder-Ransom decomposition that results in a truly decomposable approach compatible with the simple pooled regression that includes a gender dummy.
2008 Journal of Human Resources
Abstract: This paper studies the relationship between abilities, schooling choices, and black-white differentials in labor market outcomes. The analysis is based on a model of endogenous schooling choices. Agents' schooling decisions are based on expected future earnings, family background, and unobserved abilities. Earnings are also determined by unobserved abilities. The analysis distinguishes unobserved abilities from observed test scores. The model is implemented using data from the NLSY79. The results indicate that, even after controlling for abilities, there exist significant racial labor market gaps. They also suggest that the standard practice of equating observed test scores may overcompensate for differentials in ability.
2008 Journal of Human Resources
Abstract: This paper explores the interface between personality psychology and economics. We examine the predictive power of personality and the stability of personality traits over the life cycle. We develop simple analytical frameworks for interpreting the evidence in personality psychology and suggest promising avenues for future research.