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Non-cognitive skills and individual earnings: new evidence from PIAAC

Author

Listed:
  • Brindusa Anghel

    (Banco de España)

  • Pau Balart

    (Universitat de les Illes Baleares)

Abstract

We use the Programme for the International Assessment of Adult Competencies (PIAAC) data to construct several measures of non-cognitive skills and to analyze the relationship between non-cognitive skills and earnings. We construct measures for non-cognitive skills based on previous research in the field, such as self-reports and non-response in the background questionnaire. We also take advantage of the computer based nature of the assessment to explore the effects of other constructs such as skipped questions in the test, average time per question, average time per correct answer and the number of keyboard and mouse movements before answering a question. We find that, even after controlling for PIAAC scores, previously proposed proxies of non-cognitive skills (self-reports and survey non-response) are significantly associated with individual earnings. We also use these measures of non-cognitive skills to propose a correction of the PIAAC scores as a measure of cognitive skills in the earnings equation. By doing so, we observe that the relationship between earnings and PIAAC scores might be partially mediated by non-cognitive skills. However, our results also show that PIAAC test scores remain highly significant and as the main determinant of earnings after the correction.

Suggested Citation

  • Brindusa Anghel & Pau Balart, 2017. "Non-cognitive skills and individual earnings: new evidence from PIAAC," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(4), pages 417-473, November.
    • Handle: RePEc:spr:series:v:8:y:2017:i:4:d:10.1007_s13209-017-0165-x
    DOI: 10.1007/s13209-017-0165-x
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    Cited by:

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    3. Maria-Chiara Morandini & Anna Thum-Thysen & Anneleen Vandeplas, 2020. "Facing the Digital Transformation: Are Digital Skills Enough?," European Economy - Economic Briefs 054, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Damir STIJEPIC, 2020. "Employment effects of skills around the world: Evidence from the PIAAC," International Labour Review, International Labour Organization, vol. 159(3), pages 307-338, September.

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    More about this item

    Keywords

    Non-cognitive skills; Earnings; PIAAC data;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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