Human Capital and Reemployment Success: The Role of Cognitive Abilities and Personality

Involuntary periods of unemployment represent major negative experiences for many individuals. Therefore, it is important to identify factors determining the speed job seekers are able to find new employment. The present study focused on cognitive and non-cognitive abilities of job seekers that determine their reemployment success. A sample of German adults (N = 1366) reported on their employment histories over the course of six years and provided measures on their fluid and crystallized intelligence, mathematical and reading competence, and the Big Five of personality. Proportional hazard regression analyses modeled the conditional probability of finding a new job at a given time dependent on the cognitive and personality scores. The results showed that fluid and crystallized intelligence as well as reading competence increased the probability of reemployment. Moreover, emotionally stable job seekers had higher odds of finding new employment. Other personality traits of the Big Five were less relevant for reemployment success. Finally, crystallized intelligence and emotional stability exhibited unique predictive power after controlling for the other traits and showed incremental effects with regard to age, education, and job type. These findings highlight that stable individual differences have a systematic, albeit rather small, effect on unemployment durations.