TY  - JOUR
AU  - Heckman,James J.
AU  - Stixrud,Jora
AU  - Urzua,Sergio
TI  - The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12006
PY  - 2006
Y2  - February 2006
UR  - http://www.nber.org/papers/w12006
L1  - http://www.nber.org/papers/w12006.pdf
N1  - Author contact info:
James J. Heckman
Department of Economics
The University of Chicago
1126 E. 59th Street
Chicago, IL 60637
Tel: 773/702-0634
Fax: 773/702-8490
E-Mail: jjh@uchicago.edu

Jora Stixrud
E-Mail: stixrud@uchicago.edu

Sergio S. Urzua
Department of Economics
Northwestern University
2001 Sheridan Road
Evanston, IL 60208
Tel: 847/491-8213
Fax: 847/491-7001
E-Mail: s-urzua@northwestern.edu
AB  - This paper establishes that a low dimensional vector of cognitive and noncognitive skills explains a variety of labor market and behavioral outcomes. For many dimensions of social performance cognitive and noncognitive skills are equally important. Our analysis addresses the problems of measurement error, imperfect proxies, and reverse causality that plague conventional studies of cognitive and noncognitive skills that regress earnings (and other outcomes) on proxies for skills. Noncognitive skills strongly influence schooling decisions, and also affect wages given schooling decisions. Schooling, employment, work experience and choice of occupation are affected by latent noncognitive and cognitive skills. We study a variety of correlated risky behaviors such as teenage pregnancy and marriage, smoking, marijuana use, and participation in illegal activities. The same low dimensional vector of abilities that explains schooling choices, wages, employment, work experience and choice of occupation explains these behavioral outcomes.
ER  -