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The effect of noncognitive ability on the earnings of young men: A distributional analysis with measurement error correction

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  • Eren, Ozkan
  • Ozbeklik, Serkan

Abstract

Utilizing the National Educational Longitudinal Study data, this paper examines the role of pre-market cognitive and noncognitive ability, as measured in tenth grade, on the earnings of young men. In addition to the conditional mean, we estimate the impact over the earnings distribution using recently developed (instrumental) quantile regression method. Our results show that noncognitive ability is an important determinant of earnings, but the effects are not uniform across the distribution. We find noncognitive ability to be the most important at lower quantiles. The impact of cognitive ability, on the other hand, shows a more homogenous pattern. Several robustness checks support these results.

Suggested Citation

  • Eren, Ozkan & Ozbeklik, Serkan, 2013. "The effect of noncognitive ability on the earnings of young men: A distributional analysis with measurement error correction," Labour Economics, Elsevier, vol. 24(C), pages 293-304.
    • Handle: RePEc:eee:labeco:v:24:y:2013:i:c:p:293-304
    DOI: 10.1016/j.labeco.2013.08.007
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    More about this item

    Keywords

    Cognitive ability; Instrumental quantile regression; Measurement error; Noncognitive ability; Sample selection bias;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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