🚨 Just published in the Annual Review of Economics:
👉 Skills and Earnings: A Multidimensional Perspective on Human Capital 👈
https://www.annualreviews.org/content/journals/10.1146/annurev-economics-081324-081733
My review of what we know so far about the role of multidimensional skills for earnings
@annualreviews.bsky.social
1/9
👉 Skills and Earnings: A Multidimensional Perspective on Human Capital 👈
https://www.annualreviews.org/content/journals/10.1146/annurev-economics-081324-081733
My review of what we know so far about the role of multidimensional skills for earnings
@annualreviews.bsky.social
1/9
Comments
Traditionally, human capital proxied primarily by educational attainment
But expanding body of literature highlights importance of various skill dimensions for success in labor market
2/9
Basic vs. applied skills:
1️⃣ Applied skills: directly employed in executing tasks
2️⃣ Basic skills: serve as foundation to acquire applied skills + facilitate task performance
▶️ 3 types: cognitive, personality + social skills
3/9
Strong associations between cognitive skills and earnings
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Conscientiousness + internal locus of control frequently associated with higher earnings
5/9
Most production processes involve interpersonal interactions: social skills can play crucial role in facilitating performance of work tasks
6/9
Mismatch between skill dimensions supplied by workers + those demanded by employers can significantly impact earnings
7/9