An Empirical Study on the Effects of Family Background during Childhood and Non-cognitive Ability on Educational Attainment, Employment Status, and Wages

Author Name TODA Akihito  (Recruit Works Institute) /TSURU Kotaro  (Faculty Fellow, RIETI) /KUME Koichi  (Recruit Works Institute)
Creation Date/NO. March 2014 14-J-019
Research Project Reform of Labor Market Institutions
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In this paper, we examine the effects of family background during childhood and non-cognitive ability on future outcomes such as educational attainment, employment status, and wages.

The results show that the home environment during childhood has a positive effect on educational attainment, but the effect weakens during the employment period. Those who were raised in homes with book collections enjoy higher wages. In terms of non-cognitive ability, a lack of tardiness during high school as a proxy for conscientiousness positively affects educational attainment as well as the person's first and current employment. Indoor activities at age 15, a proxy for introversion, have a positive effect on educational attainment but are negative to the current employment status.

Furthermore, the wages of those who had belonged to an athletic team or a student council during junior high school are higher than those of comparative groups. The evidence implies that non-cognitive ability such as extroversion, leadership, and agreeableness cultivated by extracurricular activities is significantly related to success in the future labor market.