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Abstract

This paper finds evidence consistent with the notion that employers use education level to screen for soft skills in the hiring process. Soft skills or interpersonal skills include traits like service orientation and persuasion. This paper uses skills data from O*Net to measure the importance of soft skills relative to other skills in an occupation. If employers use education level, especially a bachelor's degree, to screen for soft skills, we would expect to see in occupations where soft skills are important that employers pay a higher wage premium for more education, that a greater share of workers are overqualified for their occupations, and that there is be more wage variability within the occupation. This paper finds strong evidence supporting this for overqualification and wage premiums, and some evidence for this for wage variability when separated by skill quantile.

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