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Cognitive ability, non-cognitive ability and occupational attainment in China

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  • Chen, Xi
  • Wang, Ziqi

Abstract

We investigate the roles of cognitive and non-cognitive abilities in predicting occupational choice and earnings in China using data from the China Family Panel Studies. Cognitive ability is assessed using scores from cognitive tests, while non-cognitive ability is measured using the Big Five factors, as well as the respondents’ locus of control, and economic preferences involving risk, trust, and patience. Our findings reveal that both cognitive and non-cognitive abilities are significantly associated with occupational choice, and different occupations exhibit distinct reward patterns for these abilities. Moreover, we observe interactive effects between cognitive and non-cognitive abilities in shaping occupational earnings. While our results indicate occupation-specific patterns in the importance of cognitive and non-cognitive abilities, they also highlight the significant role of the personality trait openness to experience in predicting both occupational choices and earnings in China’s labor market.

Suggested Citation

  • Chen, Xi & Wang, Ziqi, 2025. "Cognitive ability, non-cognitive ability and occupational attainment in China," China Economic Review, Elsevier, vol. 94(PC).
    • Handle: RePEc:eee:chieco:v:94:y:2025:i:pc:s1043951x25002482
    DOI: 10.1016/j.chieco.2025.102590
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    Keywords

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    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
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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