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Effect of cognitive abilities and non-cognitive abilities on labor wages: empirical evidence from the Chinese Employer-Employee Survey
Authors:Fan Yu  Chu Wang  Jun Shen  Yuxuan Shi
Institution:1. Institute of Quality Development Strategy, Wuhan, P.R. China;2. Macro-quality Management Collaborative Innovation Center in Hubei Province, Wuhan, P.R. China;3. China Enterprise Survey and Data Center, Wuhan, P.R. China
Abstract:ABSTRACT

The existing literature suggests that worker’s cognitive and non-cognitive abilities have a significant impact on wages. However, presently there is little research in this area of ??China’s labor force, due to scanty data. To this end, this Paper conducted a CEES-based data research, which found that, the cognitive and non-cognitive abilities of male, skilled workers have a greater impact on their wages, as compared with those of the female, unskilled workers. The OLS regression based on the Mincer Wage Equation found that, the impact of non-cognitive abilities on wages is generally larger than that of the cognitive abilities. All cognitive abilities have a positive impact on wages, wherein English proficiency has the greatest elasticity of wages, which is 12.1%. Of all non-cognitive abilities, Conscientiousness has the highest wage elasticity, which is 13.6%, whereas Agreeableness has a negative wage elasticity of ?6.32%.

Abbreviations: CEES: Chinese Employer-Employee Survey OLS: Ordinary least squares
Keywords:CEES  cognitive abilities  non-cognitive abilities  labor wages
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