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ERIC Number: EJ1075562
Record Type: Journal
Publication Date: 2015
Pages: 18
Abstractor: As Provided
Reference Count: 37
ISSN: ISSN-0260-1370
What Do Employers Pay for Employees' Complex Problem Solving Skills?
Ederer, Peer; Nedelkoska, Ljubica; Patt, Alexander; Castellazzi, Silvia
International Journal of Lifelong Education, v34 n4 p430-447 2015
We estimate the market value that employers assign to the complex problem solving (CPS) skills of their employees, using individual-level Mincer-style wage regressions. For the purpose of the study, we collected new and unique data using psychometric measures of CPS and an extensive background questionnaire on employees' personal and work history. The data were collected in 16 firms (23 establishments) in Germany, Spain, South Africa, Denmark, Slovakia, Switzerland, and France in the period 2012-2014. We find significant economic returns to CPS in our sample. One standard deviation higher CPS is associated with 10-20% higher hourly wages. The returns to CPS are sizeable even after controlling for fluid intelligence, suggesting that CPS probably captures skills important for modern production that are beyond what general intelligence tests can measure.
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Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Denmark; France; Germany; Slovakia; South Africa; Spain; Switzerland
Identifiers - Assessments and Surveys: International Adult Literacy Survey; Raven Progressive Matrices