The role of cognitive and non-cognitive skills on labour market outcomes in Indonesia
This study aims to examine the influence of cognitive and non-cognitive skills on labour market outcomes in Indonesia. The research employs the modified Mincerian model that considers the role of cognitive and personality traits of noncognitive capacities on earnings. This study relies on the data...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2019
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| Online Access: | http://journalarticle.ukm.my/14063/ http://journalarticle.ukm.my/14063/ http://journalarticle.ukm.my/14063/1/jeko_53%281%29-1.pdf |
| Summary: | This study aims to examine the influence of cognitive and non-cognitive skills on labour market outcomes in Indonesia.
The research employs the modified Mincerian model that considers the role of cognitive and personality traits of noncognitive
capacities on earnings. This study relies on the data of the fifth wave Indonesian Family Life Survey (IFLS)
using sample of 8,810 individuals. The IFLS was conducted in Indonesia in 2014. The research data use cross section
data covering 13 provinces in Indonesia. The results show that cognitive capacities measured by schooling and noncognitive
aspects of personality traits determine the labour market outcomes. Attending higher degree of education
explains higher performance of labour. In addition, extraversion personality is a strong predictor of workers’ performance
particularly for upper income groups. Furthermore, the contributions of marital status and personality traits are varied
between male and female workers. Labour market and education policies should consider the development of both
cognitive and non-cognitive skills to improve labour market outcomes. |
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