Teamwork skills are increasingly valuable in the modern labour market, with a significant wage premium for jobs requiring high levels of social interaction. This trend has been driven by the rise of technology and automation, which have reduced the demand for routine cognitive and manual jobs, while increasing the need for non-routine interactive tasks.
The wage premium for social skills has grown by 26% over the last three decades. This is particularly pronounced in jobs requiring high levels of mathematics, where the wage premium for social skills has risen by 10% per decade.
This shift has significant implications for education policy. Currently, the education system focuses on cognitive skills, such as mathematics and reading. However, the increasing importance of social skills suggests that schools should also teach students how to work effectively in teams.
This is particularly relevant for disadvantaged students, who often lack access to extra-curricular activities that develop social skills. By focusing on teamwork in schools, education policy can help to reduce inequality and ensure that all students are prepared for the modern labour market.
Interestingly, the wage premium for social skills is also higher in cities, suggesting that urbanisation and the growth of knowledge-based industries are driving the demand for teamwork. This further highlights the need for education policies that promote social skills, particularly in urban areas.
Go to source article: https://scholar.harvard.edu/files/ddeming/files/dw_teamplayers_may2020.pdf