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Childhood and Adulthood Skill Acquisition - Importance for Labor Market Outcomes

Author

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  • Karl Fritjof Krassel

    (KORA, Danish Institute for Local and Regional Government Research)

  • Kenneth Lykke Sørensen

    (Department of Economics and Business Economics, Aarhus University, Denmark
    School of Information, University of Michigan, USA)

Abstract

Using matched PISA and PIAAC data from Denmark, we investigate the return to cognitive and non-cognitive skills with respect to labor market outcomes. We measure cognitive and non-cognitive skills at childhood and when the respondents have entered the labor market. Hence, we are able to split up the analysis contingent on cognitive and non-cognitive skills measured before entering the labor market. In this way we can measure both whether cognitive and/or non-cognitive skills relate to earnings and employment rate as well as how important the timing of acquiring skills are for outcomes on the labor market. Overall we find that cognitive skills are important for both earnings and employment rate but that the timing of the acquisition of the skills is of less importance. On the contrary, non-cognitive skills are important for earnings independent on whether the worker had high or low cognitive skills at childhood, but only important for employment rate for workers with high cognitive and low non-cognitive childhood skills. Overall our findings suggest that both cognitive and non-cognitive skills are important but that the dynamics differ.

Suggested Citation

  • Karl Fritjof Krassel & Kenneth Lykke Sørensen, 2015. "Childhood and Adulthood Skill Acquisition - Importance for Labor Market Outcomes," Economics Working Papers 2015-20, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2015-20
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cognitive skills; non-cognitive skills; earnings; employment; PIAAC; PISA;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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