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- Title
The Effect of Early Cognitive Ability on Earnings Over the Life-Cycle.
- Authors
Falch, Torberg; Massih, Sofia Sandgren
- Abstract
This paper utilizes information on cognitive ability at age 10 and earnings information from age 20 to 65 to estimate the return to ability over the life-cycle. Cognitive ability measured at an early age is not influenced by the individual's choices of schooling. We find that most of the unconditional return to early cognitive ability goes through educational choice. The conditional return is increasing for low levels of experience and non-increasing for experience above about 15-25 years. The return is similar for men and women, and highest for individuals with academic education. Only a small part of the return can be explained by higher probability of having a supervisory position.
- Subjects
COGNITIVE ability; EFFECT of education on wages; EFFECT of education on labor productivity; PROBABILITY theory; HUMAN life cycle
- Publication
LABOUR: Review of Labour Economics & Industrial Relations, 2012, Vol 26, Issue 3, p287
- ISSN
1121-7081
- Publication type
Article
- DOI
10.1111/j.1467-9914.2012.00553.x