We use data from the military enlistment for a large representative sample of Swedish men to assess the importance of cognitive and noncognitive ability for labor market outcomes. The measure of noncognitive ability is based on a personal interview conducted by a psychologist. Unlike...

Good governance or “government effectiveness” (per the World Bank) is seen as a critical factor for the wealth of nations insofar as it shapes political and economic institutions and affects overall economic performance. The quality of governance, in turn, depends on the attributes of the...

Using the National Educational Longitudinal Study data, we examine the role of pre-market abilities, as well as other determinants, on young men’s self-employment decision. Our results indicate that cognitive and noncognitive abilities are two important, in opposing directions, predictors of...

Utilizing the National Educational Longitudinal Study data, this paper examines the role of pre-market cognitive and noncognitive abilities, as well as schooling inputs, on young men's earnings. In addition to the conditional mean, we estimate the impacts over the earnings distribution using...

Utilizing the National Educational Longitudinal Study data, this paper examines the role of pre-market cognitive and noncognitive ability, as measured in tenth grade, on the earnings of young men. In addition to the conditional mean, we estimate the impact over the earnings distribution using...

In this paper we investigate how cognitive ability influences behavior, success and the evolution of play towards Nash equilibrium in repeated strategic interactions. We study behavior in a p-beauty contest experiment and find striking differences according to cognitive ability: more cognitively...

This paper analyses the welfare effects of price restrictions on private contracting in a world where agents have a limited cognitive ability. We deal with that by assuming that people compute the costs and benefits of entering a transaction with an error. We first discuss an example of an...