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Occupational Attainment and Earnings in Southeast Asia: The Role of Non-cognitive Skills

Author

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  • Bühler, Dorothee
  • Sharma, Rasadhika
  • Stein, Wiebke

Abstract

Studies from industrialised countries show the importance of non-cognitive skills for occupational outcomes. However, rural labour markets in developing and emerging economies differ from industrialised labour markets, and evidence on the role of non-cognitive skills across labour markets is limited. Using new micro-level data from rural Thailand and Vietnam, we provide unique insights into the role of non-cognitive skills in occupational attainment and earnings in rural labour markets. In particular, we use nine measures (the Big Five personality traits, locus of control, risk, trust, and patience) and confirm their importance for both occupational attainment and individual earnings. We further find that returns to non-cognitive skills differ between developing and developed countries.

Suggested Citation

  • Bühler, Dorothee & Sharma, Rasadhika & Stein, Wiebke, 2020. "Occupational Attainment and Earnings in Southeast Asia: The Role of Non-cognitive Skills," Labour Economics, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:labeco:v:67:y:2020:i:c:s0927537120301172
    DOI: 10.1016/j.labeco.2020.101913
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    1. Alderotti, Giammarco & Rapallini, Chiara & Traverso, Silvio, 2023. "The Big Five personality traits and earnings: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 94(C).
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    3. Justine Herve & Helene Purcell & Subha Mani, 2023. "Conscientiousness Matters: How does Personality affect Labor Market Outcomes?," Fordham Economics Discussion Paper Series dp2023-05er:dp2023-05, Fordham University, Department of Economics.

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    More about this item

    Keywords

    Non-cognitive Skills; Personality Traits; Preferences; Locus of Control; Occupational Attainment; Occupational Earnings; Southeast Asia; TVSEP;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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