Pathways to Prosperity: The Roles of Cognitive and Non-Cognitive Skills in Employer Quality and Early Career Earnings

Mahdi Gholami and Samuel Muehlemann

No 212, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: This study explores the role of school leavers' cognitive and non-cognitive skills in securing apprenticeships with high-quality employers and in shaping early career earnings. Using linked student-employer-employee data, we find that individuals with stronger cognitive and non-cognitive skills are more likely to train with larger and more productive firms offering higher wages. Furthermore, cognitive skills, particularly math competencies, are significantly associated with higher-skilled worker wages in the first five years after training. Finally, consistent with recent research on skill multidimensionality, we find that social skills complement cognitive abilities, amplifying their positive impact on wages.

Keywords: Cognitive skill; non-cognitive skill; social skill; hiring; apprenticeship training; wage (search for similar items in EconPapers)
JEL-codes: I26 J23 J24 J31 M5 M51 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2024-02, Revised 2024-12
New Economics Papers: this item is included in nep-inv and nep-neu
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0212

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