The effect of noncognitive ability on the earnings of young men: A distributional analysis with measurement error correction

Ozkan Eren and Serkan Ozbeklik

Labour Economics, 2013, vol. 24, issue C, 293-304

Abstract: Utilizing the National Educational Longitudinal Study data, this paper examines the role of pre-market cognitive and noncognitive ability, as measured in tenth grade, on the earnings of young men. In addition to the conditional mean, we estimate the impact over the earnings distribution using recently developed (instrumental) quantile regression method. Our results show that noncognitive ability is an important determinant of earnings, but the effects are not uniform across the distribution. We find noncognitive ability to be the most important at lower quantiles. The impact of cognitive ability, on the other hand, shows a more homogenous pattern. Several robustness checks support these results.

Keywords: Cognitive ability; Instrumental quantile regression; Measurement error; Noncognitive ability; Sample selection bias (search for similar items in EconPapers)
JEL-codes: C21 I21 I28 J24 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:24:y:2013:i:c:p:293-304

DOI: 10.1016/j.labeco.2013.08.007

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