EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

Full metadata record

DC FieldValueLanguage
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.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.publisherInstitute for the Study of Labor (IZA) Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3609en_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.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.titleCognitive skills explain economic preferences, strategic behavior, and job attachmenten_US
dc.typeWorking Paperen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
574382364.pdf515.26 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.