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The Influence of Non-Cognitive Skills on Wages within and between Firms: Evidence from Bangladesh's Formal Sector

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dc.contributor.authorAdhikari, Samik
dc.contributor.authorNomura, Shinsaku
dc.date.accessioned2017-05-23T22:20:55Z
dc.date.available2017-05-23T22:20:55Z
dc.date.issued2017-05
dc.description.abstractMany employers and employees believe that non-cognitive skills are an important contributor to labor market success. This study has assessed the empirical evidence for such a claim in the case of Bangladesh by evaluating unique employer-employee matched labor market data. The analysis is based on data collected from 6,981 workers in 500 formal sector firms in Bangladesh's five largest formal economic sectors. Using ordinary least squares and firm fixed-effect models, the study assesses correlations between wages and the so-called "big five" personality traits, and augments the analysis with the latent personality scores captured by the Rasch model. Comparing the ordinary least squares and fixed-effect models reveals statistically significant correlations between personality traits and wages, within and across firms. The results appear to indicate that non-cognitive skills are correlated with a worker's likelihood of achieving success in the labor market. Although many of the findings are consistent with the literature, the analysis reveals specific patterns that appear to be unique to Bangladesh, including a positive correlation between “emotional stability” and wages and a negative correlation between "grit" and wages, especially among manufacturing workers. Differences across firms could indicate that firms that offer higher wages may tend to attract workers with distinct types of non-cognitive skills, whereas differences within firms may indicate that variations in non-cognitive skills are associated with disparities in firm-level wage structures. Correlations between wages and personality traits are more prominent among large firms than among small or medium-sized firms.en
dc.identifierhttp://documents.worldbank.org/curated/en/919881493918760759/The-influence-of-non-cognitive-skills-on-wages-within-and-between-firms-evidence-from-Bangladeshs-formal-sector
dc.identifier.doi10.1596/1813-9450-8053
dc.identifier.urihttps://hdl.handle.net/10986/26731
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8053
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectPERSONALITY TRAITS
dc.subjectWAGES
dc.subjectOCCUPATONS
dc.subjectFIRM-FIXED EFFECTS
dc.subjectRASCH MODEL
dc.subjectLABOR MARKET
dc.titleThe Influence of Non-Cognitive Skills on Wages within and between Firmsen
dc.title.subtitleEvidence from Bangladesh's Formal Sectoren
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Influence of Non-Cognitive Skills on Wages within and between Firms: Evidence from Bangladesh's Formal Sector
okr.date.disclosure2017-05-04
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/919881493918760759/The-influence-of-non-cognitive-skills-on-wages-within-and-between-firms-evidence-from-Bangladeshs-formal-sector
okr.guid919881493918760759
okr.identifier.doi10.1596/1813-9450-8053
okr.identifier.externaldocumentum090224b084b3b82d_1_0
okr.identifier.internaldocumentum27423643
okr.identifier.reportWPS8053
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/919881493918760759/pdf/WPS8053.pdfen
okr.region.administrativeSouth Asia
okr.region.countryBangladesh
okr.statistics.combined2384
okr.statistics.dr919881493918760759
okr.statistics.drstats1987
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Skills Development and Labor Force Training
okr.topicSocial Protections and Labor::Wages, Compensation & Benefits
okr.topicEducation::Education For All
okr.unitEducation Global Practice Group
relation.isAuthorOfPublication030c79e5-1336-442a-9f3d-a870f3424209
relation.isAuthorOfPublication208a78c7-9120-529a-af26-4b54b9ebfece
relation.isAuthorOfPublication.latestForDiscovery208a78c7-9120-529a-af26-4b54b9ebfece
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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