IQ tests and achievement tests do not capture non-cognitive skills — personality traits, goals, character and motivations that are valued in the labour market, in school and elsewhere. For many outcomes, their predictive power rivals or exceeds that of cognitive skills. Skills are stable...

The model developed in this article explains differences in the division of labour across firms as a result of computer technology adoption. Changes in the division of labour result from reduced production time and improved communication possibilities. The first shifts the division of labour...