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Pathways to Prosperity: The Roles of Cognitive and Non-Cognitive Skills in Employer Quality and Early Career Earnings

Author

Listed:
  • Mahdi Gholami
  • Samuel Muehlemann

Abstract

This study explores the role of school leavers' cognitive and non-cognitive skills in securing apprenticeships with high-quality employers and in shaping early career earnings. Using linked student-employer-employee data, we find that individuals with stronger cognitive and non-cognitive skills are more likely to train with larger and more productive firms offering higher wages. Furthermore, cognitive skills, particularly math competencies, are significantly associated with higher-skilled worker wages in the first five years after training. Finally, consistent with recent research on skill multidimensionality, we find that social skills complement cognitive abilities, amplifying their positive impact on wages.

Suggested Citation

  • Mahdi Gholami & Samuel Muehlemann, 2024. "Pathways to Prosperity: The Roles of Cognitive and Non-Cognitive Skills in Employer Quality and Early Career Earnings," Economics of Education Working Paper Series 0212, University of Zurich, Department of Business Administration (IBW), revised Dec 2024.
    • Handle: RePEc:iso:educat:0212
    as

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    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0212_lhwpaper.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Cognitive skill; non-cognitive skill; social skill; hiring; apprenticeship training; wage;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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