Arbeitspapier

Social skills and the individual wage growth of less educated workers

We use matched employee-employer data from the UK to highlight the importance of social skills, including the ability to work well in a team and communicate effectively with co-workers, as a driver for individual wage growth for workers with few formal educational qualifications. We show that lower educated workers in occupations where social skills are more important experience steeper wage growth with tenure, and also higher early exit rates, than equivalent workers in occupations where social skills are less important. Moreover, the return to tenure in occupations where social skills are important is stronger in firms with a larger share of higher educated workers. We rationalize our findings using a model of wage bargaining with complementarity between the skills and abilities of less educated workers and the firm's other assets.

Language
Englisch

Bibliographic citation
Series: IFS Working Papers ; No. 23/25

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Human Capital; Skills; Occupational Choice; Labor Productivity
Firm Performance: Size, Diversification, and Scope
Subject
team work
social skills
individual wage growth
firm pay premium

Event
Geistige Schöpfung
(who)
Aghion, Philippe
Bergeaud, Antonin
Blundell, Richard W.
Griffith, Rachel
Event
Veröffentlichung
(who)
Institute for Fiscal Studies (IFS)
(where)
London
(when)
2023

DOI
doi:10.1920/wp/ifs.2023.2523
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Aghion, Philippe
  • Bergeaud, Antonin
  • Blundell, Richard W.
  • Griffith, Rachel
  • Institute for Fiscal Studies (IFS)

Time of origin

  • 2023

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