Non-cognitive skills and the labour market: the past, the present and the future

Josten, Cecily (2023) Non-cognitive skills and the labour market: the past, the present and the future. PhD thesis, London School of Economics and Political Science.

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Abstract

The aim of this PhD thesis is to shed light on the role of non-cognitive skills in the labour market in the past, the present and the future. Increasingly, research considers how non-cognitive skills determine important work outcomes, such as wages. Knowing which non-cognitive skills have an impact on such outcomes is hence helpful for individuals wanting to upskill themselves or others. In this thesis I start by highlighting the importance of non-cognitive skills in rapidly changing labour markets in paper 1 and 2, which motivate the analyses in paper 3, 4 and 5. In paper 1, I synthesise the academic evidence on the role of non-cognitive skills. In paper 2, I analyse the impact of skills and abilities on the automatability of occupations. In paper 3, I focus on how a traditional measure of non-cognitive skills, the Big Five personality inventory, determines wage outcomes for men and women differently. I find that agreeableness is punished more for men than it is for women pointing at differential rewards to personality by gender. I extend paper 3 by looking at how the demand and reward for specific non-cognitive skills changes over time in paper 4. Increasing technological innovation and disruptions to modern labour markets are changing the way we work, and the skills required at work. I study a large data set of job advertisements to analyse which non-cognitive skills are rewarded over time and find that collaborative leadership skills are increasing in importance. Also, I find that data science skills are evolving rapidly with the need to upskill on them frequently. The importance of collaborative leadership raises the question what makes collaboration successful and how to measure it. Inclusion has been shown to be a determinant of successful group outcomes. In paper 5 of this thesis, I hence develop an ‘Individual Inclusiveness Inventory’ that focuses on measuring what makes an individual inclusive. It does so in the vein of developing a personality trait scale like the Big Five that fits current labour market needs. The scale is developed through interviews with experts in inclusion and based on literature. It is then validated using a sample of working individuals in the UK and linked to work outcomes. The resulting ‘Individual Inclusiveness Inventory’ consists of two factors where one factor captures an individual’s skill to foster belonging and uniqueness of co-workers and the other factor captures an individual’s openness to challenge others and to be challenged. I also find that it predicts labour market outcomes. Overall, my thesis contributes to past literature on non-cognitive skills and the labour market by offering new perspectives on non-cognitive skills in rapidly changing labour markets.

Item Type:	Thesis (PhD)
Additional Information:	© 2023 Cecily Josten
Library of Congress subject classification:	B Philosophy. Psychology. Religion > BF Psychology H Social Sciences > HD Industries. Land use. Labor
Sets:	Departments > Psychological and Behavioural Science
Supervisor:	Lordan, Grace
URI:	http://etheses.lse.ac.uk/id/eprint/4582

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