Human capital and leadership: the impact of cognitive and noncognitive abilities

Title: Human capital and leadership: the impact of cognitive and noncognitive abilities
Format: Journal Article
Publication Date: 2019
Published In: Applied Economics
Description:

We conduct an economic analysis about the impact of human capital on an individual’s potential of becoming a leader based on data from the Programme for the International Assessment of Adult Competencies Survey (PIAAC). Our human capital indicators include not only traditional measures such as education and experience, but also various measures of cognitive and noncognitive ability. Our cognitive ability measures include numeracy, literacy, and problem solving abilities, and noncognitive ability measures include perseverance, motivation to learn, and social trust. We specifically investigate the effect of measurement error and reverse causality on the estimation results. We find that problem-solving ability is the most important in affecting leadership among cognitive ability measures, and perseverance shows the strongest impact among noncognitive ability measures. As a leader supervises more employees, the role of cognitive and noncognitive ability becomes more critical.

Ivan Allen College Contributors:
External Contributors: Tingting Tong, Samuel Greiff
Citation:

Human capital and leadership: the impact of cognitive and noncognitive abilities”, Tingting Tong, Haizheng Li, Samuel Greiff, Applied Economics, vol. 51(53), pp. 5741-5752, 2019. 

Related Departments:
  • School of Economics