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Non-cognitive skills and earnings in Canada

Summary:
This newly published paper (click on the first link here) by McLean, Bouaissa, Rainville, and Auger confirms some more general results, usually taken from American data: Our results indicate that conscientiousness is positively associated with wages, while agreeableness, extraversion, and neuroticism are associated with negative returns, with higher magnitudes on agreeableness and conscientiousness for females. Cognitive ability has the highest estimated wage return so, while significant, non-cognitive skills do not seem to be the most important wage determinant. The main difference seems to be that in Canada extraversion is correlated with lower earnings, but in the United States in general it is not.  And note that a one standard deviation increase in agreeableness for women is

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This newly published paper (click on the first link here) by McLean, Bouaissa, Rainville, and Auger confirms some more general results, usually taken from American data:

Our results indicate that conscientiousness is positively associated with wages, while agreeableness, extraversion, and neuroticism are associated with negative returns, with higher magnitudes on agreeableness and conscientiousness for females. Cognitive ability has the highest estimated wage return so, while significant, non-cognitive skills do not seem to be the most important wage determinant.

The main difference seems to be that in Canada extraversion is correlated with lower earnings, but in the United States in general it is not.  And note that a one standard deviation increase in agreeableness for women is associated with a 7.4-8.7% income penalty, but no corresponding income penalty for men.  Finally, (p.112) that the rate of return on education is over seven percent, and after adjusting for cognitive level this falls by only 30 percent, relevant for the signaling model of education of course.

The post Non-cognitive skills and earnings in Canada appeared first on Marginal REVOLUTION.

Tyler Cowen
Tyler Cowen is an American economist, academic, and writer. He occupies the Holbert C. Harris Chair of economics as a professor at George Mason University and is co-author, with Alex Tabarrok, of the popular economics blog Marginal Revolution. Cowen and Tabarrok have also ventured into online education by starting Marginal Revolution University. He currently writes the "Economic Scene" column for the New York Times, and he also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly.

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