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Author: Brownfield, David Lee, Father
Resulting in 1 citation.
1. Brownfield, David Lee, Father
Return On Cognitive Ability in the Labor Market
Ph.D. Dissertation, The University of Iowa, 1998
Cohort(s): NLSY79
Publisher: UMI - University Microfilms, Bell and Howell Information and Learning
Keyword(s): Armed Services Vocational Aptitude Battery (ASVAB); Cognitive Ability; Current Population Survey (CPS) / CPS-Fertility Supplement; Intelligence Tests; Tests and Testing; Wage Theory

Cognitive ability affects the wages workers receive for their labor. Cognitive ability is a person's aptitude in thinking, learning and applying knowledge. Many instruments purport to measure cognitive ability, such as Intelligence tests (IQ), The American College Testing Program (ACT) scores, The College Entrance Examination Board's Scholastic Aptitude Test (SAT), The Preliminary Scholastic Aptitude Test (PSAT) exam and the Army Service Vocational Battery (ASVB) exam. The instruments found in the National Longitudinal Survey of Youth (NLSY79) were used to demonstrate that cognitive ability is a significant determinant of the expected logarithm of wages. The term cognitive ability is used as opposed to intelligence deliberately to leave open the possibility that it can be improved with education. Intelligence, which traditionally is measured by IQ scores, is part of cognitive ability. In the analysis, cognitive ability determination is only important for an individual prior to entering the labor market. Cognitive ability, regardless of when and how a person receives it, is a significant determinate of a worker's wages. I demonstrated ASVB, ACT, SAT and PSAT, as found in the NLSY79, are similar measures of cognitive ability valued by employers and further, that it measures something that is not measured by IQ testing. Although IQ is highly correlated with cognitive ability and is a major part of it, it is not a similar measure to ASVB as a measure of cognitive ability. Thus, cognitive ability, as valued in the labor market, is more than just intelligence. Three steps were used to proceed: first, a review of the current literature and trends in the Current Populations Survey (CPS) data; second, a comparison and contrast the ASVB to IQ, ACT, SAT and PSAT; finally, the application of the method of moment to the wage equation using ASVB data and data from ACT, SAT, PSAT or IQ to demonstrate that cognitive ability is a significant determinate of the wage equation and its inclusion affects the premium for educational and racial wage gap.
Bibliography Citation
Brownfield, David Lee, Father. Return On Cognitive Ability in the Labor Market. Ph.D. Dissertation, The University of Iowa, 1998.