Cognitive and Socioemotional Skills in Low-Income Countries: Measurement and Associations with Schooling and Earning. Policy Research Working Paper 10309

This paper assesses the reliability and validity of cognitive and socioemotional skills measures and investigates the correlation between schooling, skills acquisition, and labor earnings. The primary data from Pakistan incorporates two innovations related to measurement and sampling. On measurement, the paper develops and implements a battery of instruments intended to capture cognitive and socioemotional skills among young adults. On sampling, the paper uses a panel that follows respondents from their original rural locations in 2003 to their residences in 2018, a period over which 38 percent of the respondents left their native villages. In terms of their validity and reliability, our skills measures compare favorably to previous measurement attempts in low- and middle-income countries. The following are documented in the data: (a) more years of schooling are correlated with higher cognitive and socioemotional skills; (b) labor earnings are correlated with cognitive and socioemotional skills as well as years of schooling; and (c) the earnings-skills correlations depend on respondents' migration status. The magnitudes of the correlations between schooling and skills on the one hand and earnings and skills on the other are consistent with a widespread concern that such skills are under-produced in the schooling system. [This report was prepared by the World Bank Group's Development Research Group, Development Economics. Funding was provided by RISE and World Bank's Strategic Research Program Fund.]