Occupational Attainment and Earnings in Southeast Asia: The Role of Non-cognitive Skills

Abstract

Studies from industrialised countries show the importance of non-cognitive skills for occupational outcomes. However, rural labour markets in developing and emerging economies differ from industrialised labour markets, and evidence on the role of non-cognitive skills across labour markets is limited. Using new micro-level data from rural Thailand and Vietnam, we provide unique insights into the role of non-cognitive skills in occupational attainment and earnings in rural labour markets. In particular, we use nine measures (the Big Five personality traits, locus of control, risk, trust, and patience) and confirm their importance for both occupational attainment and individual earnings. We further find that returns to non-cognitive skills differ between developing and developed countries.