| Abstract: |
While large literatures have shown that cognitive ability and schooling
increases employment and wages, an emerging literature examines the importance
of so-called "non-cognitive skills" in producing labor market outcomes.
However, this smaller literature has not typically used causal methods in
estimating the results. One source of heterogeneity that may play an important
role in producing both personality and other non-cognitive skills and labor
market outcomes is family background, including genetic endowments. This paper
is the first to use sibling differences to estimate the effects of personality
on employment and wages and is also able to control for many other sources of
heterogeneity, including attractiveness, cognitive ability, schooling,
occupation, and other factors. Overall, the findings suggest that personality
measures are important determinants of labor market outcomes in adulthood and
that the results vary considerably by demographic group. The findings also
highlight the potential role of extraversion in leading to favorable labor
market outcomes, which has not been documented in many other studies. |