Working Paper

Are There Skills Payoffs in Low- and Middle-Income Countries? : Empirical Evidence Using STEP Data

Show simple item record

collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Valerio, Alexandria
dc.contributor.author
Sanchez Puerta, Maria Laura
dc.contributor.author
Tognatta, Namrata
dc.contributor.author
Monroy-Taborda, Sebastian
dc.date.accessioned
2016-12-05T23:19:24Z
dc.date.available
2016-12-05T23:19:24Z
dc.date.issued
2016-11
dc.description.abstract
Most research on the economic payoffs of skills has used individuals' level of schooling attained -- typically years or level of education or training received—as a key proxy for skills. Such research has consistently found that individual returns to schooling are positive and that returns tend to be higher in low- and middle-income countries than in higher-income countries. However, years in school is only one proxy for skills -- are these returns still observed using other measures as proxies? This study uses data from the STEP Skills Measurement Survey to examine the extent to which there is an independent association between cognitive and noncognitive skills and earnings in low- and middle-income countries. The study uses measures of reading proficiency and complexity of on-the-job computer tasks to proxy cognitive skills, and personality and behavioral measures to proxy noncognitive skills. The results demonstrate that even when controlling for schooling and background factors, these skills pay off in the labor market. This is particularly the case for the measures of cognitive skills, while noncognitive skills show some significant, but small, effects on earnings. The findings also suggest that there is significant heterogeneity across countries in how skills are valued in the labor market.
en
dc.identifier.uri
http://hdl.handle.net/10986/25678
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7879
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
skills
dc.subject
cognitive skills
dc.subject
noncognitive skills
dc.subject
labor market outcomes
dc.title
Are There Skills Payoffs in Low- and Middle-Income Countries?
en
dc.title.subtitle
Empirical Evidence Using STEP Data
en
dc.type
Working Paper
en
okr.date.disclosure
2016-11-03
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/231391478194467051/Are-there-skills-payoffs-in-low-and-middle-income-countries-empirical-evidence-using-STEP-data
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7879
okr.identifier.externaldocumentum
090224b0846aabb4_1_0
okr.identifier.internaldocumentum
26910880
okr.identifier.report
WPS7879
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/231391478194467051/pdf/WPS7879.pdf
en
okr.topic
Poverty Reduction :: Pro-Poor Growth
okr.topic
Poverty Reduction :: Achieving Shared Growth
okr.topic
Social Protections and Labor :: Skills Development and Labor Force Training
okr.topic
Education :: Education For All
okr.unit
Education Global Practice Group

Show simple item record



This item appears in the following Collection(s)