How important are the cognitive skills of teenagers in predicting subsequent earnings?
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ArticlePublisher: 2000Journal of Policy Analysis and Management 19, 4, p. 547-568Abstract: How important are teenagers`cognitive skills in predicting subsequent labor market success? Do cognitive skills pay off in the labor market only for students who go to college? Does college benefit only students who enter with strong basic skills? These questions are often parts of current policy debate about how to improve the earning prospects for young Americans. This paper addresses these questions using two longitudinal data sets with earnings information from the mid -1980s. It shows that the same evidence can be used to support the claim that cognitive skills are important determinants of subsequent earnings, and that the effect of cognitive skills is modest. It also shows that while some evidence indicates that college pays off more for students who enter with strong cognitive skills than for students who enter with weaker skills, the bulk of the evidence does not support this conclusion
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How important are teenagers`cognitive skills in predicting subsequent labor market success? Do cognitive skills pay off in the labor market only for students who go to college? Does college benefit only students who enter with strong basic skills? These questions are often parts of current policy debate about how to improve the earning prospects for young Americans. This paper addresses these questions using two longitudinal data sets with earnings information from the mid -1980s. It shows that the same evidence can be used to support the claim that cognitive skills are important determinants of subsequent earnings, and that the effect of cognitive skills is modest. It also shows that while some evidence indicates that college pays off more for students who enter with strong cognitive skills than for students who enter with weaker skills, the bulk of the evidence does not support this conclusion
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