Abstract

This paper develops a framework of the role of interpersonal interactions in the labor market. Effective interpersonal interactions involve caring and directness. The ability to perform these tasks varies with personality and the importance of these tasks varies across jobs. An assignment model shows that people are most productive in jobs that match their style. An oversupply of one attribute relative to the other reduces wages for people who are better with the attribute in greater supply. We present evidence that youth sociability affects job assignment in adulthood. The returns to interpersonal interactions are consistent with the assignment model.

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Additional Information

ISSN
1548-8004
Print ISSN
0022-166X
Pages
pp. 815-858
Launched on MUSE
2012-04-04
Open Access
No
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