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Title: The Labor Market Value of Non-Cognitive Skills

Citation Type: Working Paper

Publication Year: 2020

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Abstract: In the last half-century, a large academic literature has emerged documenting the empirical relationship between non-cognitive skills and labor market outcomes. In this paper, I review this literature, putting emphasis on new work in economics. The literature provides overwhelming evidence that non-cognitive skills (e.g. internal locus of control, social skills, motivation, etc.) are associated with, and likely cause, labor market success. Furthermore, I summarize a growing literature that documents the rising value of non-cognitive skills relative to cognitive skills, especially post 2000, and that, due to the nature technological change, this trend is likely to continue. Finally, I document two shortcomings of the literature: (1) no study has successfully isolated the causal effect of non-cognitive skills training in a developed country and (2) very little is known about the value of signaling non-cognitive skills to employers.

Url: https://scholar.harvard.edu/files/kadeem/files/noray_value_noncog.pdf

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Authors: Noray, Kadeem

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Institution: Harvard University

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Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

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