The Importance of Multiple Abilities for Labor Market Outcomes
It is common knowledge that noncognitive abilities matter for success on the labor market. Individuals must create new products or services, interact with others, carry out work independently, communicate knowledge and use other “soft skills” at work. To the extent that noncognitive abilities are associated with carrying out a task at work, they affect labor market outcomes such as employment or wage over time. However, although personal determinants of labor market outcomes are an important economic issue, lack of data has limited research on how noncognitive abilities affect these outcomes.
I have access to a unique Danish survey from 2004 on supply of multiple abilities, including noncognitive abilities. Based on this, the aim of my postdoc project is to determine:
1) The importance of multiple abilities for employment
That is, whether and to which extent the individual use at work of the creative and innovative ability, social competency, self-management, communication ability, among others, affect the likelihood of being employed rather than unemployed in 2004?
2) The returns to multiple abilities over time
That is, whether and to which extent the individual use at work of the creative and innovative ability, social competency, self-management, and communication ability, among others, influences wages from 2004 to 2012? I look at the returns for all employees and within different occupations.