Using Genes to Explore the Relationship of Cognitive and Non-Cognitive Skills with Education and Labor Market Outcomes

69 Pages Posted: 13 May 2023

See all articles by Thomas Buser

Thomas Buser

University of Amsterdam - Amsterdam School of Economics (ASE)

Rafael Ahlskog

Uppsala University

Magnus Johannesson

Stockholm School of Economics

Philipp Koellinger

Vrije Universiteit Amsterdam

Sven Oskarsson

Uppsala University

Abstract

A large literature establishes that cognitive and non-cognitive skills are strongly correlated with educational attainment and professional achievement. Isolating the causal effects of these traits on career outcomes is made difficult by reverse causality and selection issues. We suggest a different approach: instead of using direct measures of individual traits, we use differences between individuals in the presence of genetic variants that are associated with differences in skills and personality traits. Genes are fixed over the life cycle and genetic differences between full siblings are random, making it possible to establish the causal effects of within-family genetic variation. We link genetic data from individuals in the Swedish Twin Registry to government registry data and find evidence for causal effects of genetic differences linked to cognitive skills, personality traits, and economic preferences on professional achievement and educational attainment. Our results also demonstrate that education and labor market outcomes are partially the result of a genetic lottery.

Keywords: personality traits, economic preferences, cognitive skills, labor markets, education, polygenic indices

JEL Classification: J24, D91, I26

Suggested Citation

Buser, Thomas and Ahlskog, Rafael and Johannesson, Magnus and Koellinger, Philipp and Oskarsson, Sven, Using Genes to Explore the Relationship of Cognitive and Non-Cognitive Skills with Education and Labor Market Outcomes. IZA Discussion Paper No. 16125, Available at SSRN: https://ssrn.com/abstract=4447086 or http://dx.doi.org/10.2139/ssrn.4447086

Thomas Buser (Contact Author)

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
Amsterdam, North Holland 1018 WB
Netherlands

HOME PAGE: http://sites.google.com/site/thomasbuser/

Rafael Ahlskog

Uppsala University

Box 513
Uppsala, 751 20
Sweden

Magnus Johannesson

Stockholm School of Economics

PO Box 6501
Stockholm, 11383
Sweden

Philipp Koellinger

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

HOME PAGE: http://www.philipp-koellinger.com

Sven Oskarsson

Uppsala University

Box 513
Uppsala, 751 20
Sweden

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