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: jheckman@uchicago.edu Jora Stixrud E-Mail: stixrud@uchicago.edu Sergio Urzua 1401 East Hyde Park Blvd. #901 Chicago, IL, 60615 E-Mail: surzua@uchicago.edu M1 - published as Heckman, James J., Jora Stixrud and Sergio Urzua. "The Effects Of Cognitive and Noncognitive Abilities On Labor Market Outcomes and Social Behavior," Journal of Labor Economics, 2006, v24(3,Jul), 411-482. 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 -