The Rising Return to Non-Cognitive Skill

descriptionPublicationkeyboard_double_arrow_right Article , Research , Report 01 Jan 2017 Sweden English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: Edin, Per-Anders; Fredriksson, Peter; Nybom, Martin; Öckert, Björn;

doi: 10.2139/ssrn.3029784 , 10.1257/app.20190199

handle: 10419/201456 , 10419/197667 , 10419/170898

The Rising Return to Non-Cognitive Skill

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Abstract

This paper uses administrative data from Sweden to document trends in the labor market returns to skills. Between 1992 and 2013, the economic return to noncognitive skill—a psychologist-assessed measure of teamwork and leadership skill—roughly doubled. The return to cognitive skill was relatively stable and decreased modestly during the 2000s, however. Among men with similar levels of education, the return to noncognitive skill is higher than the return to cognitive skill. The increasing return to noncognitive skill is driven by changes at the top of the wage distribution and by sorting into higher-paying occupations. (JEL I26, J24, J31)

Country

Sweden

Related Organizations

Institute for the Study of Labor
Germany
Department of Economics
Indonesia
Departement of Economics
United States
Institute for Evaluation of Labour Market and Education Policy
Sweden
Uppsala University

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Keywords

returns to skills, cognitive/non-cognitive skill, Economics, wage inequality, ddc:330, J24, skill returns, noncognitive skills, cognitive skills, Wage inequality, Nationalekonomi, J31, sorting

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