Are There Skills Payoffs in Low- and Middle-Income Countries? Empirical Evidence Using Skills Towards Employability and Productivity Data

• In Event: Roundtable Session 7
  In Roundtable Session: Education, Wages, and the Labor Market

Abstract

Skills are important for the success of individuals and societies. There is a rich literature examining skills and labor market outcomes, including gender-based wage gaps. This research has traditionally measured skills using years of schooling and training. But as educational attainment and the demand for skills increases, researchers are using cognitive and non-cognitive skills measures to examine labor market outcomes. Until now, most of this research has been conducted in the western context. This paper uses harmonized survey data from eight developing countries to examine the relationship between cognitive and non-cognitive skills and wages. The paper also explores gender differences in how skills are rewarded across these countries. The findings have implications for education and skill development policies in these countries.

Authors

• Namrata Tognatta, The World Bank Group

• Alexandria Valerio, The World Bank Group

• Maria Laura Sanchez Puerta, The World Bank Group

• Sebastian Monroy Taborda, The World Bank Group