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Beyond qualifications : returns to cognitive and socio-emotional skills in Colombia

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  • Acosta,Pablo Ariel
  • Muller,Noel
  • Sarzosa,Miguel Alonso

Abstract

This paper examines the relationship between individuals? skills and labor market outcomes for the working-age population of Colombia?s urban areas. Using a 2012 unique household survey, the paper finds that cognitive skills (aptitudes to perform mental tasks such as comprehension or reasoning) and socio-emotional skills (personality traits and behaviors) matter for favorable labor market outcomes in the Colombian context, although they have distinct roles. Cognitive skills are greatly associated with higher earnings and holding a formal job or a high-qualified occupation. By contrast, socio-emotional skills appear to have little direct influence on these outcomes, but play a stronger role in labor market participation. Both types of skills, especially cognitive skills, are largely associated with pursuing tertiary education. The analysis applies standard econometric techniques as a benchmark and structural estimations to correct for the measurement error of skill constructs.

Suggested Citation

  • Acosta,Pablo Ariel & Muller,Noel & Sarzosa,Miguel Alonso, 2015. "Beyond qualifications : returns to cognitive and socio-emotional skills in Colombia," Policy Research Working Paper Series 7430, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7430
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    1. Sébastien Michiels & Christophe Jalil Nordman & Suneha Seetahul, 2021. "Many Rivers to Cross: Social Identity, Cognition, and Labor Mobility in Rural India," The ANNALS of the American Academy of Political and Social Science, , vol. 697(1), pages 66-80, September.
    2. Maria Cinque & Stephanie Carretero & Joanna Napierala, 2021. "Non-cognitive skills and other related concepts: towards a better understanding of similarities and differences," JRC Working Papers on Labour, Education and Technology 2021-09, Joint Research Centre.
    3. Christophe J Nordman & Leopold R Sarr & Smriti Sharma, 2019. "Skills, personality traits, and gender wage gaps: evidence from Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 687-708.
    4. Wang, Jun & Liao, Chengjuan & Wan, Xuan & Song, Hui, 2021. "Skill Formation, Employment Discrimination, and Wage Inequality: Evidence from the People’s Republic of China," ADBI Working Papers 1283, Asian Development Bank Institute.
    5. Björn Nilsson, 2019. "The School-to-Work Transition in Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 745-764, May.
    6. Bossavie, Laurent & Alderman, Harold & Giles, John & Mete, Cem, 2021. "The effect of height on earnings: Is stature just a proxy for cognitive and non-cognitive skills?," Economics & Human Biology, Elsevier, vol. 43(C).
    7. Sofie Cabus & Joanna Napierala & Stephanie Carretero, 2021. "The Returns to Non-Cognitive Skills: A Meta-Analysis," JRC Working Papers on Labour, Education and Technology 2021-06, Joint Research Centre.
    8. Tarun Jain & Abhiroop Mukhopadhyay & Nishith Prakash & Raghav Rakesh, 2022. "Science education and labor market outcomes in a developing economy," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 741-763, April.
    9. Botea, Ioana & Donald, Aletheia & Rouanet, Léa, 2021. "In it to win it? Self-esteem and income-earning among couples," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 488-506.
    10. Krishnakumar, Jaya & Nogales, Ricardo, 2020. "Education, skills and a good job: A multidimensional econometric analysis," World Development, Elsevier, vol. 128(C).
    11. Jain, Tarun & Mukhopadhyay, Abhiroop & Prakash, Nishith & Rakesh, Raghav, 2018. "Labor Market Effects of High School Science Majors in a High STEM Economy," IZA Discussion Papers 11934, Institute of Labor Economics (IZA).
    12. Huerta, María del Carmen, 2019. "Evaluación de habilidades socioemocionales y transversales: un estado del arte," Sector/thematic working papers 1419, CAF Development Bank Of Latinamerica.
    13. Hilger, Anne & Nordman, Christophe Jalil & Sarr, Leopold, 2018. "Cognitive and Non-Cognitive Skills, Hiring Channels, and Wages in Bangladesh," IZA Discussion Papers 11578, Institute of Labor Economics (IZA).
    14. Luis Eduardo Arango & Gabriela Bonilla, 2015. "Human capital agglomeration and social returns to education in Colombia," Borradores de Economia 12788, Banco de la Republica.
    15. Christian S. Otchia, 2019. "On Promoting Entrepreneurship and Job Creation in Africa: Evidence from Ghana and Kenya," Economics Bulletin, AccessEcon, vol. 39(2), pages 908-918.
    16. Pablo Acosta & Noel Muller, 2018. "The role of cognitive and socio-emotional skills in labor markets," IZA World of Labor, Institute of Labor Economics (IZA), pages 453-453, October.
    17. Christophe J Nordman & Leopold R Sarr & Smriti Sharma, 2019. "Skills, personality traits, and gender wage gaps: evidence from Bangladesh," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 687-708.

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    More about this item

    Keywords

    Labor Markets; Education For All; Educational Sciences; Effective Schools and Teachers; Primary Education;
    All these keywords.

    JEL classification:

    • 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
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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