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The Measurement of Cognitive Ability in Wave 12 of the HILDA Survey

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  • Mark Wooden

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper provides a statistical overview of three new cognitive ability measures collected in wave 12 of the HILDA Survey: (i) Backwards Digit Span; (ii) the Symbol Digits Modalities Test; and (iii) a 25-item version of the National Adult Reading Test. The paper: analyses willingness to participate (as reflected in item response); examines the evidence on the performance of the measures and the extent to which scores were influenced by external circumstances, interview mode, and interviewers; reports summary descriptive data; and presents cursory evidence on the extent to which the measures are predictive of outcomes, and more specifically the hourly wage among working-age employees.

Suggested Citation

  • Mark Wooden, 2013. "The Measurement of Cognitive Ability in Wave 12 of the HILDA Survey," Melbourne Institute Working Paper Series wp2013n44, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2013n44
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2013n44.pdf
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    References listed on IDEAS

    as
    1. Cawley, John & Heckman, James & Vytlacil, Edward, 2001. "Three observations on wages and measured cognitive ability," Labour Economics, Elsevier, vol. 8(4), pages 419-442, September.
    2. Heineck, Guido & Anger, Silke, 2010. "The returns to cognitive abilities and personality traits in Germany," Labour Economics, Elsevier, vol. 17(3), pages 535-546, June.
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    3. Nejad, Maryam Naghsh & Schurer, Stefanie, 2022. "Cognitive and non-cognitive abilities of immigrants: New perspectives on migrant quality from a selective immigration country," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 107-124.
    4. Hessels, Jolanda & Rietveld, Cornelius A. & Thurik, A. Roy & van der Zwan, Peter, 2020. "The higher returns to formal education for entrepreneurs versus employees in Australia," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    5. Edwards, Rebecca & Gibson, Rachael & Harmon, Colm & Schurer, Stefanie, 2022. "First-in-their-family students at university: Can non-cognitive skills compensate for social origin?," Economics of Education Review, Elsevier, vol. 91(C).
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    7. Leonora Risse & Lisa Farrell & Tim R L Fry, 2018. "Personality and pay: do gender gaps in confidence explain gender gaps in wages?," Oxford Economic Papers, Oxford University Press, vol. 70(4), pages 919-949.
    8. Watson Nicole & Wooden Mark, 2021. "The Household, Income and Labour Dynamics in Australia (HILDA) Survey," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 241(1), pages 131-141, February.
    9. Perales, Francisco, 2018. "The cognitive roots of prejudice towards same-sex couples: An analysis of an Australian national sample," Intelligence, Elsevier, vol. 68(C), pages 117-127.
    10. Niels-Hugo Blunch & David C. Ribar & Mark Western, 2020. "Under pressure? Assessing the roles of skills and other personal resources for work-life strains," Review of Economics of the Household, Springer, vol. 18(3), pages 883-906, September.
    11. Black, Nicole & Johnston, David W. & Shields, Michael A. & Suziedelyte, Agne, 2017. "Who provides inconsistent reports of their health status? The importance of age, cognitive ability and socioeconomic status," Social Science & Medicine, Elsevier, vol. 191(C), pages 9-18.
    12. Rohde, Nicholas & Trivedi, Pravin & Tang, K.K. & Rao, Prasada, 2023. "Cognitive and non-cognitive traits and the intergenerational transmission of socioeconomic inequality," Journal of Economic Psychology, Elsevier, vol. 97(C).
    13. Sonja C. Kassenboehmer & Stefanie Schurer, 2018. "Survey item-response behavior as an imperfect proxy for unobserved ability: Theory and application," Working Papers 2018-035, Human Capital and Economic Opportunity Working Group.
    14. Barbara Broadway & John P. Haisken-DeNew, 2019. "Keep calm and consume? Subjective uncertainty and precautionary savings," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 43(3), pages 481-505, July.
    15. de New, Sonja C. & Schurer, Stefanie & Sulzmaier, Dominique, 2021. "Gender differences in the lifecycle benefits of compulsory schooling policies," European Economic Review, Elsevier, vol. 140(C).
    16. Sabia, Joseph J. & Wooden, Mark & Nguyen, Thanh Tam, 2018. "Sexual identity, same-same relationships, and health dynamics: New evidence from Australia," Economics & Human Biology, Elsevier, vol. 30(C), pages 24-36.
    17. de New, Sonja C. & Schurer, Stefanie & Leung, Felix, 2015. "Testing the Validity of Item Non-Response as a Proxy for Cognitive and Non-Cognitive Skills," IZA Discussion Papers 8874, Institute of Labor Economics (IZA).
    18. Joseph J. Sabia & Mark Wooden & Thanh Tam Nguyen, 2017. "Sexual Identity, Same‐Sex Relationships, and Labour Market Dynamics: New Evidence from Longitudinal Data in Australia," Southern Economic Journal, John Wiley & Sons, vol. 83(4), pages 903-931, April.
    19. Gong, Xiaodong & Zhu, Rong, 2019. "Cognitive abilities, non-cognitive skills, and gambling behaviors," Journal of Economic Behavior & Organization, Elsevier, vol. 165(C), pages 51-69.
    20. Leonora Risse, 2020. "Leaning in: Is higher confidence the key to women's career advancement?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(1), pages 43-77.
    21. Johnston, David W. & Kassenboehmer, Sonja C. & Shields, Michael A., 2016. "Financial decision-making in the household: Exploring the importance of survey respondent, health, cognitive ability and personality," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 42-61.
    22. Arvid O. I. Hoffmann & Leonora Risse, 2020. "Do good things come in pairs? How personality traits help explain individuals' simultaneous pursuit of a healthy lifestyle and financially responsible behavior," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 1082-1120, September.

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    More about this item

    Keywords

    Cognitive ability; HILDA Survey; survey measurement; panel survey data; wages;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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