Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations
Evidence from developed country data suggests that cognitive and non-cognitive skills contribute to improved labor market outcomes. This paper tests this hypothesis in a developing country by using an individual-level data set from Peru that incorp...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/02/25855104/cognitive-non-cognitive-skills-peruvian-labor-market-addressing-measurement-error-through-latent-skills-estimations http://hdl.handle.net/10986/23725 |
| id |
okr-10986-23725 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
SKILLS COMPUTER LITERACY HIGH‐SCHOOL COGNITIVE TESTS MOTIVATION PERSONALITY ACHIEVEMENT TESTS MOTHER TONGUE WORKING MEMORY COGNITIVE” SKILLS SCHOOLING PSYCHOLOGY NUMERACY LEVELS OF EDUCATION SKILLS DEVELOPMENT BIAS LITERACY SURVEY GROUPS INTELLIGENCE EDUCATION POLICY LEVELS OF EDUCATION HIGH SCHOOL LIFE SKILLS LOWER LEVELS OF EDUCATION HIGHER EDUCATION META‐ANALYSIS PAPERS SOCIAL BEHAVIOR APTITUDES THINKING ROLES ADULTS LITERACY SKILLS COGNITIVE TESTS LANGUAGE PARENTAL EDUCATION INFORMATION PROCESSING LITERACY KNOWLEDGE ADULT LIFE COGNITIVE DEVELOPMENT SKILL DEVELOPMENT COGNITIVE TEST IMAGINATION MATHEMATICS COMPUTER LITERACY COGNITIVE SKILLS TRAINING DECISION‐MAKING TESTS EDUCATIONAL ATTAINMENT EDUCATIONAL ATTAINMENT ECONOMICS OF EDUCATION RELATIONSHIPS ABILITY SCHOLASTIC ACHIEVEMENT AGING SECONDARY SCHOOL PARENTAL EDUCATION PRIMARY SCHOOLING SCHOOL CURRICULUM NEEDS LEARNING LOWER LEVELS OF EDUCATION SKILL ACQUISITION PRIMARY SCHOOL REASONING INFORMATION PROCESSING SOCIAL DEVELOPMENT TEST SCORES SOCIAL PSYCHOLOGY TESTING PROBLEM SOLVING LITERACY SURVEY SCHOOL PROGRAM DEVELOPMENTAL PSYCHOLOGY COGNITION HIGHER EDUCATION SKILL ACQUISITION SECONDARY EDUCATION COGNITIVE ABILITY BELIEFS STUDY LITERACY SKILLS STUDIES ADOLESCENCE REFERENCE BOOKS VALUES SCHOOLS OLDER AGE GROUPS PARTICIPATION AGE SOCIAL DEVELOPMENT GENDER CHILDHOOD COGNITIVE” SKILLS MORALITY ADULT LITERACY OCCUPATIONS AGE GROUPS ACHIEVEMENT EDUCATION LEVEL EFFORT EARLY CHILDHOOD YOUTH DECISION MAKING PERSONALITY TRAITS SOCIAL BEHAVIOR WORKING MEMORY COGNITIVE ABILITY SELF‐EFFICACY INFORMATION‐PROCESSING WORKSHOPS INDIVIDUAL DIFFERENCES ADOLESCENTS CURRICULUM TEACHER SCHOOL CURRICULUM COGNITIVE DEVELOPMENT PERCEPTION COGNITIVE SKILLS UNDERSTANDING CHILDREN SELF‐ESTEEM EDUCATION SKILL DEVELOPMENT VERBAL ABILITY STATISTICS PERSONALITY TRAITS RATES OF RETURN PLAYING PERFORMANCE BASIC SKILLS EXPERIENCE SKILLS DEVELOPMENT ACTIVITY INTERACTIONS OCCUPATIONAL CHOICE PROBLEM SOLVING SELF‐ ESTEEM INDIVIDUAL DIFFERENCES LEADERSHIP INTERVENTIONS PRIMARY EDUCATION OLDER ADULTS PRIMARY EDUCATION WOMEN APPLIED PSYCHOLOGY MEMORY SCHOOL PROGRAM CLASSROOM GOALS SCHOOL SECONDARY EDUCATION ADULT LITERACY VERBAL ABILITY RETURNS TO EDUCATION |
| spellingShingle |
SKILLS COMPUTER LITERACY HIGH‐SCHOOL COGNITIVE TESTS MOTIVATION PERSONALITY ACHIEVEMENT TESTS MOTHER TONGUE WORKING MEMORY COGNITIVE” SKILLS SCHOOLING PSYCHOLOGY NUMERACY LEVELS OF EDUCATION SKILLS DEVELOPMENT BIAS LITERACY SURVEY GROUPS INTELLIGENCE EDUCATION POLICY LEVELS OF EDUCATION HIGH SCHOOL LIFE SKILLS LOWER LEVELS OF EDUCATION HIGHER EDUCATION META‐ANALYSIS PAPERS SOCIAL BEHAVIOR APTITUDES THINKING ROLES ADULTS LITERACY SKILLS COGNITIVE TESTS LANGUAGE PARENTAL EDUCATION INFORMATION PROCESSING LITERACY KNOWLEDGE ADULT LIFE COGNITIVE DEVELOPMENT SKILL DEVELOPMENT COGNITIVE TEST IMAGINATION MATHEMATICS COMPUTER LITERACY COGNITIVE SKILLS TRAINING DECISION‐MAKING TESTS EDUCATIONAL ATTAINMENT EDUCATIONAL ATTAINMENT ECONOMICS OF EDUCATION RELATIONSHIPS ABILITY SCHOLASTIC ACHIEVEMENT AGING SECONDARY SCHOOL PARENTAL EDUCATION PRIMARY SCHOOLING SCHOOL CURRICULUM NEEDS LEARNING LOWER LEVELS OF EDUCATION SKILL ACQUISITION PRIMARY SCHOOL REASONING INFORMATION PROCESSING SOCIAL DEVELOPMENT TEST SCORES SOCIAL PSYCHOLOGY TESTING PROBLEM SOLVING LITERACY SURVEY SCHOOL PROGRAM DEVELOPMENTAL PSYCHOLOGY COGNITION HIGHER EDUCATION SKILL ACQUISITION SECONDARY EDUCATION COGNITIVE ABILITY BELIEFS STUDY LITERACY SKILLS STUDIES ADOLESCENCE REFERENCE BOOKS VALUES SCHOOLS OLDER AGE GROUPS PARTICIPATION AGE SOCIAL DEVELOPMENT GENDER CHILDHOOD COGNITIVE” SKILLS MORALITY ADULT LITERACY OCCUPATIONS AGE GROUPS ACHIEVEMENT EDUCATION LEVEL EFFORT EARLY CHILDHOOD YOUTH DECISION MAKING PERSONALITY TRAITS SOCIAL BEHAVIOR WORKING MEMORY COGNITIVE ABILITY SELF‐EFFICACY INFORMATION‐PROCESSING WORKSHOPS INDIVIDUAL DIFFERENCES ADOLESCENTS CURRICULUM TEACHER SCHOOL CURRICULUM COGNITIVE DEVELOPMENT PERCEPTION COGNITIVE SKILLS UNDERSTANDING CHILDREN SELF‐ESTEEM EDUCATION SKILL DEVELOPMENT VERBAL ABILITY STATISTICS PERSONALITY TRAITS RATES OF RETURN PLAYING PERFORMANCE BASIC SKILLS EXPERIENCE SKILLS DEVELOPMENT ACTIVITY INTERACTIONS OCCUPATIONAL CHOICE PROBLEM SOLVING SELF‐ ESTEEM INDIVIDUAL DIFFERENCES LEADERSHIP INTERVENTIONS PRIMARY EDUCATION OLDER ADULTS PRIMARY EDUCATION WOMEN APPLIED PSYCHOLOGY MEMORY SCHOOL PROGRAM CLASSROOM GOALS SCHOOL SECONDARY EDUCATION ADULT LITERACY VERBAL ABILITY RETURNS TO EDUCATION Cunningham, Wendy Parra Torrado, Mónica Sarzosa, Miguel Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations |
| geographic_facet |
Latin America & Caribbean Peru |
| relation |
Policy Research Working Paper;No. 7550 |
| description |
Evidence from developed country data
suggests that cognitive and non-cognitive skills contribute
to improved labor market outcomes. This paper tests this
hypothesis in a developing country by using an
individual-level data set from Peru that incorporates
modules to measure cognitive and non-cognitive skills. The
paper estimates a structural latent model with unobserved
heterogeneity to capture full ability rather than just
measured skill. It also applies standard ordinary least
squares techniques for comparison. The analysis confirms
that cognitive and non-cognitive skills are positively
correlated with a range of labor market outcomes in Peru. In
particular, cognitive skills positively correlate with wages
and the probability of being a wage worker, white-collar,
and formal worker, with verbal fluency and numeric ability
playing particularly strong roles. The results are robust to
methodology. The patterns are less uniform for non-cognitive
skills. For instance, perseverance of effort (grit) emerges
strongly for most outcomes regardless of methodology.
However, plasticity—an aggregation of openness to experience
and emotional stability—is only correlated with employment,
and only when using the structural latent model. The
ordinary least squares method also finds that the
disaggregated non-cognitive skills of kindness, cooperation,
emotional stability, and openness to experience emerge
significantly, mostly for the wage estimates. The different
results derived from the ordinary least squares and the
structural model with latent skills suggest strong
measurement bias in most non-cognitive skills measurement.
These findings, although only correlational because of the
use of a single cross-section, suggest that recent efforts
by the Peruvian government to incorporate non-cognitive
skill development into the school curriculum are justified. |
| format |
Working Paper |
| author |
Cunningham, Wendy Parra Torrado, Mónica Sarzosa, Miguel |
| author_facet |
Cunningham, Wendy Parra Torrado, Mónica Sarzosa, Miguel |
| author_sort |
Cunningham, Wendy |
| title |
Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations |
| title_short |
Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations |
| title_full |
Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations |
| title_fullStr |
Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations |
| title_full_unstemmed |
Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations |
| title_sort |
cognitive and non-cognitive skills for the peruvian labor market : addressing measurement error through latent skills estimations |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/02/25855104/cognitive-non-cognitive-skills-peruvian-labor-market-addressing-measurement-error-through-latent-skills-estimations http://hdl.handle.net/10986/23725 |
| _version_ |
1764454641599250432 |
| spelling |
okr-10986-237252021-04-23T14:04:17Z Cognitive and Non-Cognitive Skills for the Peruvian Labor Market : Addressing Measurement Error through Latent Skills Estimations Cunningham, Wendy Parra Torrado, Mónica Sarzosa, Miguel SKILLS COMPUTER LITERACY HIGH‐SCHOOL COGNITIVE TESTS MOTIVATION PERSONALITY ACHIEVEMENT TESTS MOTHER TONGUE WORKING MEMORY COGNITIVE” SKILLS SCHOOLING PSYCHOLOGY NUMERACY LEVELS OF EDUCATION SKILLS DEVELOPMENT BIAS LITERACY SURVEY GROUPS INTELLIGENCE EDUCATION POLICY LEVELS OF EDUCATION HIGH SCHOOL LIFE SKILLS LOWER LEVELS OF EDUCATION HIGHER EDUCATION META‐ANALYSIS PAPERS SOCIAL BEHAVIOR APTITUDES THINKING ROLES ADULTS LITERACY SKILLS COGNITIVE TESTS LANGUAGE PARENTAL EDUCATION INFORMATION PROCESSING LITERACY KNOWLEDGE ADULT LIFE COGNITIVE DEVELOPMENT SKILL DEVELOPMENT COGNITIVE TEST IMAGINATION MATHEMATICS COMPUTER LITERACY COGNITIVE SKILLS TRAINING DECISION‐MAKING TESTS EDUCATIONAL ATTAINMENT EDUCATIONAL ATTAINMENT ECONOMICS OF EDUCATION RELATIONSHIPS ABILITY SCHOLASTIC ACHIEVEMENT AGING SECONDARY SCHOOL PARENTAL EDUCATION PRIMARY SCHOOLING SCHOOL CURRICULUM NEEDS LEARNING LOWER LEVELS OF EDUCATION SKILL ACQUISITION PRIMARY SCHOOL REASONING INFORMATION PROCESSING SOCIAL DEVELOPMENT TEST SCORES SOCIAL PSYCHOLOGY TESTING PROBLEM SOLVING LITERACY SURVEY SCHOOL PROGRAM DEVELOPMENTAL PSYCHOLOGY COGNITION HIGHER EDUCATION SKILL ACQUISITION SECONDARY EDUCATION COGNITIVE ABILITY BELIEFS STUDY LITERACY SKILLS STUDIES ADOLESCENCE REFERENCE BOOKS VALUES SCHOOLS OLDER AGE GROUPS PARTICIPATION AGE SOCIAL DEVELOPMENT GENDER CHILDHOOD COGNITIVE” SKILLS MORALITY ADULT LITERACY OCCUPATIONS AGE GROUPS ACHIEVEMENT EDUCATION LEVEL EFFORT EARLY CHILDHOOD YOUTH DECISION MAKING PERSONALITY TRAITS SOCIAL BEHAVIOR WORKING MEMORY COGNITIVE ABILITY SELF‐EFFICACY INFORMATION‐PROCESSING WORKSHOPS INDIVIDUAL DIFFERENCES ADOLESCENTS CURRICULUM TEACHER SCHOOL CURRICULUM COGNITIVE DEVELOPMENT PERCEPTION COGNITIVE SKILLS UNDERSTANDING CHILDREN SELF‐ESTEEM EDUCATION SKILL DEVELOPMENT VERBAL ABILITY STATISTICS PERSONALITY TRAITS RATES OF RETURN PLAYING PERFORMANCE BASIC SKILLS EXPERIENCE SKILLS DEVELOPMENT ACTIVITY INTERACTIONS OCCUPATIONAL CHOICE PROBLEM SOLVING SELF‐ ESTEEM INDIVIDUAL DIFFERENCES LEADERSHIP INTERVENTIONS PRIMARY EDUCATION OLDER ADULTS PRIMARY EDUCATION WOMEN APPLIED PSYCHOLOGY MEMORY SCHOOL PROGRAM CLASSROOM GOALS SCHOOL SECONDARY EDUCATION ADULT LITERACY VERBAL ABILITY RETURNS TO EDUCATION Evidence from developed country data suggests that cognitive and non-cognitive skills contribute to improved labor market outcomes. This paper tests this hypothesis in a developing country by using an individual-level data set from Peru that incorporates modules to measure cognitive and non-cognitive skills. The paper estimates a structural latent model with unobserved heterogeneity to capture full ability rather than just measured skill. It also applies standard ordinary least squares techniques for comparison. The analysis confirms that cognitive and non-cognitive skills are positively correlated with a range of labor market outcomes in Peru. In particular, cognitive skills positively correlate with wages and the probability of being a wage worker, white-collar, and formal worker, with verbal fluency and numeric ability playing particularly strong roles. The results are robust to methodology. The patterns are less uniform for non-cognitive skills. For instance, perseverance of effort (grit) emerges strongly for most outcomes regardless of methodology. However, plasticity—an aggregation of openness to experience and emotional stability—is only correlated with employment, and only when using the structural latent model. The ordinary least squares method also finds that the disaggregated non-cognitive skills of kindness, cooperation, emotional stability, and openness to experience emerge significantly, mostly for the wage estimates. The different results derived from the ordinary least squares and the structural model with latent skills suggest strong measurement bias in most non-cognitive skills measurement. These findings, although only correlational because of the use of a single cross-section, suggest that recent efforts by the Peruvian government to incorporate non-cognitive skill development into the school curriculum are justified. 2016-02-03T20:00:33Z 2016-02-03T20:00:33Z 2016-02 Working Paper http://documents.worldbank.org/curated/en/2016/02/25855104/cognitive-non-cognitive-skills-peruvian-labor-market-addressing-measurement-error-through-latent-skills-estimations http://hdl.handle.net/10986/23725 English en_US Policy Research Working Paper;No. 7550 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Peru |