Education and Non-Cognitive Skills

60 Pages Posted: 26 Mar 2018

See all articles by Yvonne Chen

Yvonne Chen

ShanghaiTech University - School of Entrepreneurship and Management

Yi Lu

National University of Singapore (NUS) - Department of Economics

Huihua Xie

School of Management and Economics, The Chinese University of Hong Kong

Date Written: March 26, 2018

Abstract

In this paper we estimate the causal relationship between schooling and non- cognitive skills in later life. We exploit two exogenous changes in education policy in China and Indonesia and estimate the effect of schooling on non-cognitive skills as measured by the Locus of Control and five-factor model. We employ Regression Probability Jump and Kink Design (RPJK) for identification. Our results indicate that schooling leads to a less Internal Locus of Control, and makes individuals more conscientious, open and extroverted. The effect of schooling on non-cognitive skills can explain significant variation in returns to schooling on the labor market.

Keywords: Education, Noncognitive Skills, Compulsory Education Law, Regression Discontinuity, Jump and Kink

JEL Classification: J24, I26, I28

Suggested Citation

Chen, Yvonne and Lu, Yi and Xie, Huihua, Education and Non-Cognitive Skills (March 26, 2018). Lee Kuan Yew School of Public Policy Research Paper No. 18-05, Available at SSRN: https://ssrn.com/abstract=3149222 or http://dx.doi.org/10.2139/ssrn.3149222

Yvonne Chen (Contact Author)

ShanghaiTech University - School of Entrepreneurship and Management ( email )

100 Haike Rd
Pudong Xinqu, Shanghai
China

Yi Lu

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore
65-65166834 (Phone)

HOME PAGE: http://ylu6.weebly.com

Huihua Xie

School of Management and Economics, The Chinese University of Hong Kong ( email )

Shatin, N.T.
Hong Kong
Hong Kong

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