Nexus between Non-Cognitive and Cognitive Skills and their Joint effect on Labour Market Outcomes: Evidence from Youths aged 1525 years in Kenya

Cognitive skills, rooted in specific neural networks, and soft skills, comprising personal traits, attitudes, and motivations, jointly contribute to workforce adaptability in the ever-changing landscape of modern workplaces. Recognizing their pivotal role in enhancing human capital quality, this study explored their joint impact on labour market outcomes, including probability of employment. Traditionally, economists have predominantly emphasized cognitive skills, overlooking the significance of the non-cognitive dimension. Within the context of Kenya, the government has launched initiatives to empower its youth for social and economic development and the education sector has expanded. Despite this background, these efforts fall short of producing adequately trained middle level human capital, hindering national progress. This situation is aggravated by the grave concern of a job market mismatch, resulting in soaring youth unemployment rates. The root cause of this mismatch can be partly traced to the limited inclusion of non-cognitive skills in education curricula, despite ongoing reforms largely centred on cognitive development. Both in education and the workplace, non-cognitive factors emerge as stronger predictors of success than their cognitive counterparts. Occupations demanding a blend of cognitive and non-cognitive skills offer higher employment prospects and wage premiums. A synthesis of these skill sets renders workers more valuable and better positioned for career advancement. Addressing the pressing issue of youth unemployment necessitates the alignment of youth skills with labour market demands. This research seeks to address two key challenges: gender disparity and the mismatch between youth skills and available job opportunities. Using binary logistic regression, this study identified factors influencing youth employment, with a specific focus on the interplay between skills and values. Key findings underscore the importance of both cognitive and non-cognitive skills in labour market outcomes, with individuals possessing a combination of these skills enjoying improved employment prospects and career success. The study also revealed that the complementarity between agreeableness and digital literacy skills has a positive impact on the employment likelihood of female youth. Marital status signifies stability and responsibility, while education levels augment an individuals competencies, enhancing competitiveness in the job market. Consequently, this study emphasizes the equivalence of personality traits and cognitive abilities in the eyes of employers and advocates for curriculum reform that integrates personality traits into employers selection criteria.