2001
DOI: 10.1257/jel.39.4.1137
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The Determinants of Earnings: A Behavioral Approach

Abstract: We survey the determinants of earnings and propose a framework for understanding labor market success. We suggest that the advantages of the children of successful parents go considerably beyond the benefits of superior education, the inheritance of wealth, or the genetic inheritance of cognitive ability. We suggest that noncognitive personality variables, such as attitudes towards risk, ability to adapt to new economic conditions, hard work, and the rate of time preference affect both earning and the transmis… Show more

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Cited by 932 publications
(688 citation statements)
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References 81 publications
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“…Socio-demographic control variables-Control variables were included for five sociodemographic variables known to predict earnings (13,14): age at interview, sex, race-ethnicity (Non-Hispanic White, Non-Hispanic Black, Hispanic, Other), Census region (Northeast, Midwest, South, West), and urbanicity (Major Metropolitan Area, other urbanized areas, rural areas). Rice et al and Harwood et al also controlled respondent education, marital status, and number of household members.…”
Section: Methodsmentioning
confidence: 99%
“…Socio-demographic control variables-Control variables were included for five sociodemographic variables known to predict earnings (13,14): age at interview, sex, race-ethnicity (Non-Hispanic White, Non-Hispanic Black, Hispanic, Other), Census region (Northeast, Midwest, South, West), and urbanicity (Major Metropolitan Area, other urbanized areas, rural areas). Rice et al and Harwood et al also controlled respondent education, marital status, and number of household members.…”
Section: Methodsmentioning
confidence: 99%
“…Though many studies have shown that social and behavioral skills are associated with academic achievement and attainment (Alexander et al, 2003;Ladd, Birch, and Buhs, 1999;Nor-3 mandeau and Guay, 1998;Raver et al, 2005;Trzesniewski et al, 2006), scholars continue to debate the specific skills that matter, the size of their effects, and the extent to which they explain gaps in educational achievement by race, class, and gender (Bowles, Gintis, and Osborne, 2001;Borghans et al, 2008;Murnane, Willett, and Levy, 1995). In a series of papers, Heckman and colleagues argue that parents influence the development of social and behavioral as well as cognitive skills, and that interventions such as enriched child-care centers (e.g., the Perry preschool program) boosted social and behavioral skills of children, and improved academic performance through this vehicle (Heckman and Rubenstein, 2001;Cawley, Heckman, and Vytlacil, 2001;Carneiro and Heckman, 2003;Cunha et al, 2006;Heckman and Masterov, 2007;Heckman, Stixrud, and Urzua, 2006;Urzua, 2006).…”
Section: Social/behavioral Skills Academic Achievement and Gendermentioning
confidence: 99%
“…Economists currently try to identify determinants of labor market success other than observable formal degrees (see Bowles et al (2001) for an overview). One important factor might be the specific use of leisure time by successful workers.…”
Section: Introductionmentioning
confidence: 99%