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Effect of cognitive abilities and non-cognitive abilities on labor wages: empirical evidence from the Chinese Employer-Employee Survey

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  • Fan Yu
  • Chu Wang
  • Jun Shen
  • Yuxuan Shi
  • Tang Li

Abstract

The existing literature suggests that worker’s cognitive and non-cognitive abilities have a significant impact on wages. However, presently there is little research in this area of ​​China’s labor force, due to scanty data. To this end, this Paper conducted a CEES-based data research, which found that, the cognitive and non-cognitive abilities of male, skilled workers have a greater impact on their wages, as compared with those of the female, unskilled workers. The OLS regression based on the Mincer Wage Equation found that, the impact of non-cognitive abilities on wages is generally larger than that of the cognitive abilities. All cognitive abilities have a positive impact on wages, wherein English proficiency has the greatest elasticity of wages, which is 12.1%. Of all non-cognitive abilities, Conscientiousness has the highest wage elasticity, which is 13.6%, whereas Agreeableness has a negative wage elasticity of −6.32%.Abbreviations: CEES: Chinese Employer-Employee Survey OLS: Ordinary least squares

Suggested Citation

  • Fan Yu & Chu Wang & Jun Shen & Yuxuan Shi & Tang Li, 2017. "Effect of cognitive abilities and non-cognitive abilities on labor wages: empirical evidence from the Chinese Employer-Employee Survey," China Economic Journal, Taylor & Francis Journals, vol. 10(1), pages 76-89, January.
    • Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:76-89
    DOI: 10.1080/17538963.2016.1274005
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