All about balance? A test of the Jack-of-all-Trades theory using military enlistment data

•We test the Jack-of-all-Trades theory using Swedish military enlistment data.•Ability balance is measured based on tests of cognitive and non-cognitive ability.•The unique data addresses the issue of endogeneity in skill balance.•We find that both propensity for self-employment and success increase...

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Bibliographic Details
Published in:Labour economics 2017-12, Vol.49, p.1-13
Main Authors: Aldén, Lina, Hammarstedt, Mats, Neuman, Emma
Format: Article
Language:English
Subjects:
Ability balance
Cognitive and non-cognitive ability
Earnings
Economics
Jack-of-all-Trades theory
Nationalekonomi
Occupational choice
Self-employment
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Summary:•We test the Jack-of-all-Trades theory using Swedish military enlistment data.•Ability balance is measured based on tests of cognitive and non-cognitive ability.•The unique data addresses the issue of endogeneity in skill balance.•We find that both propensity for self-employment and success increase with ability balance.•Policies for skill-building in many areas should encourage self-employment. According to the Jack-of-all-Trades theory, people with a balanced set of skills are more suitable for self-employment than are those without. In this paper we test this theory using Swedish military enlistment data. This data enables us to construct a measure of balance in abilities that, in comparison to measures used in previous research, is less contaminated by endogeneity problems. We find clear support for the Jack-of-all-Trades theory, in the sense that the likelihood of being self-employed is higher for individuals whose skills are balanced. In addition, their earnings from self-employment tend to be higher.
ISSN:0927-5371
1879-1034
1879-1034
DOI:10.1016/j.labeco.2017.09.001