The Effects of Cognitive and Noncognitive Abilities on Wages in Japan (Japanese)
Koichi Kume and
Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)
This paper provides the first evidence in Japan on how both cognitive and non-cognitive abilities affect individual wages. Using data from "Internet Survey on Intergenerational Education and Training, and Cognitive and Non-cognitive Abilities" conducted by the Research Institute of Economy, Trade and Industry, we employ test scores from the cognitive reflection test (CRT) and literacy and numeracy scores from OECD online assessments as cognitive abilities, and Big Five, self-esteem, and locus of control as measures of non-cognitive abilities, in order to estimate the effect of cognitive and non-cognitive abilities using OLS and quantile regression. The results are as follows. We first find a robust result in a significant positive effect of extroversion and self-esteem on wages for any different sample restriction choices or estimation methods. Our estimates also suggest the positive effect of conscientiousness and emotional stability and the negative effect of agreeableness and openness to experience on wages, depending on the estimations by gender and wage quartile. Furthermore, we confirm the important role of cognitive abilities, which is particularly demonstrated in the significant positive effect of CRT, and the fact that numeracy has a greater effect than literacy on wages.
Pages: 38 pages
New Economics Papers: this item is included in nep-neu
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:20024
Access Statistics for this paper
More papers in Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().