Unpacking the Link/Relationship Between Skills and Economic Success: Rethinking Human Capital

• In Event: Marriott Roundtable Session 77
  In Roundtable Session: Rethinking Human Capital in Adult Literacy and Adult Education

Abstract

This paper examined the relationship between various skills of individuals and their economic success in the Japanese context using the large-scale data from PIAAC. Our results show the relative importance of schooling over cognitive and non-cognitive (meta-cognitive) skills as wage determinants in the Japanese labor market. We also suggest that the initial wage disparities between workers of different educational credentials at entry become fixed and do not converge over years. The relative importance of schooling as in the result of our analysis implies that attaining higher education is an essential prerequisite for higher earnings in Japan’s labor market. Such high value of higher education credentials may remain unchanged in the coming years, even with changes in technology and skills demanded.

Authors

• Jun Yamashita, Japan Women’s University

• Atsuko Muroga, Teachers College, Columbia University

• Minako Yamashita, Teachers College, Columbia University