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The Math-Verbal Divide: Unequal Returns to Cognitive Skills in Education and Work

Author

Listed:
  • Delaney, Judith

    (University of Bath)

  • Devereux, Paul

    (University College Dublin)

Abstract

We use population-level administrative data on secondary school students in England to examine how mathematical and verbal skills shape educational and labour market outcomes. Tracking cohorts from age 16 through higher education and into employment up to age 34, we show that these skills operate through distinct pathways. Verbal skills strongly predict educational attainment - including university enrolment, completion, and postgraduate study - while mathematical skills yield substantially larger earnings returns. At ages 30-34, moving from the 25th to the 75th percentile of the mathematics distribution is associated with 29% higher earnings, compared with 14% for verbal skills. This divergence is partly driven by field-of-study choice: individuals with stronger verbal skills are more likely to enter fields with higher completion rates but lower pay, while those with stronger mathematical skills sort into STEM and other high-paying fields. Gender differences in skills explain the female advantage in higher education and part of the STEM gap, but have limited impact on the gender earnings gap due to offsetting effects across these channels.

Suggested Citation

  • Delaney, Judith & Devereux, Paul, 2026. "The Math-Verbal Divide: Unequal Returns to Cognitive Skills in Education and Work," IZA Discussion Papers 18542, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18542
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    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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