Motivation and self-discipline may be just as important in determining future earnings as are cognitive abilities such as verbal and math skills, according to James Heckman, an economics professor at the University of Chicago and a Nobel Prize recipient. Heckman and colleagues found that after controlling for cognitive ability, general equivalency diploma (GED) recipients earn less than other high school dropouts—a surprising finding, given that earning a GED is usually seen as a path to higher wages.

The reason, they suggest, is that while the GED recipients are smart enough to pass the test, they lack the motivation and self-discipline necessary to finish high school the first time around. They are able to pass the test, but may have trouble applying their intelligence in the real world, says Heckman. The finding that other dropouts with similar cognitive abilities earn higher wages suggests they have other skills, including discipline and motivation, which enable them to earn more.

Kids who attend schools that teach self-discipline and motivation, often achieved through mentoring and career guidance, are less likely to engage in crime, more likely to finish high school and earn higher wages, the study found. This suggests, says Heckman, that policy makers should push schools to teach life skills, especially to disadvantaged kids who receive poor discipline or little encouragement at home.

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