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dc.contributor.authorBurks, Stephen V.en_US
dc.contributor.authorCarpenter, Jeffrey P.en_US
dc.contributor.authorGötte, Lorenzen_US
dc.contributor.authorRustichini, Aldoen_US
dc.date.accessioned2008-09-22en_US
dc.date.accessioned2010-07-07T11:31:01Z-
dc.date.available2010-07-07T11:31:01Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-2008072947en_US
dc.identifier.urihttp://hdl.handle.net/10419/34952-
dc.description.abstractEconomic analysis has said little about how an individual's cognitive skills (CS's) are related to the individual's preferences in different choice domains, such as risk-taking or saving, and how preferences in different domains are related to each other. Using a sample of 1,000 trainee truckers we report three findings. First, we show a strong and significant relationship between an individual's cognitive skills and preferences, and between the preferences in different choice domains. The latter relationship may be counterintuitive: a patient individual, more inclined to save, is also more willing to take calculated risks. A second finding is that measures of cognitive skill predict social awareness and choices in a sequential Prisoner's Dilemma game. Subjects with higher CS's more accurately forecast others' behavior, and differentiate their behavior depending on the first mover's choice, returning higher amount for a higher transfer, and lower for a lower one. After controlling for investment motives, subjects with higher CS's also cooperate more as first movers. A third finding concerns on-the-job choices. Our subjects incur a significant financial debt for their training that is forgiven only after twelve months of service. Yet over half leave within the first year, and cognitive skills are also strong predictors of who exits too early, stronger than any other social, economic and personality measure in our data. These results suggest that cognitive skills affect the economic lives of individuals, by systematically changing preferences and choices in a way that favors the economic success of individuals with higher cognitive skills.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3609en_US
dc.subject.jelC81en_US
dc.subject.ddc330en_US
dc.subject.keywordField experimenten_US
dc.subject.keywordrisk aversionen_US
dc.subject.keywordambiguity aversionen_US
dc.subject.keywordloss aversionen_US
dc.subject.keywordtime preferenceen_US
dc.subject.keywordPrisoners Dilemmaen_US
dc.subject.keywordsocial dilemmaen_US
dc.subject.keywordIQen_US
dc.subject.keywordMPQen_US
dc.subject.keywordnumeracyen_US
dc.subject.keywordU.S. trucking industryen_US
dc.subject.keywordfor-hire carriageen_US
dc.subject.keywordtruckload (TL)en_US
dc.subject.keyworddriver turnoveren_US
dc.subject.keywordemployment durationen_US
dc.subject.keywordsurvival modelen_US
dc.subject.stwKognitionen_US
dc.subject.stwEntscheidungen_US
dc.subject.stwPräferenztheorieen_US
dc.subject.stwGefangenendilemmaen_US
dc.subject.stwVerkehrsberufeen_US
dc.subject.stwBildungsertragen_US
dc.subject.stwErwerbsverlaufen_US
dc.subject.stwFeldforschungen_US
dc.subject.stwUSAen_US
dc.titleCognitive skills explain economic preferences, strategic behavior, and job attachmenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn574382364en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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