6.3 Socioemotional Skills of Formal and Informal Workers Differ

Coverage Scenario

FIGURE 6.3 Socioemotional Skills of Formal and Informal Workers Differ

Source: Estimates based on data of the 2013 Pakistan labor and Skills Survey (lSS) and 2012 Sri lanka Skills toward Employment and Productivity (STEP). Note: Only statistically significant results are reported.

ESTIMATING THE IMPACT OF SOCIOEMOTIONAL SKILLS ON EARNINGS

The analysis estimates the relationship of cognitive and socioemotional skills with earnings while controlling for basic demographic characteristics and a few labor market variables. The Heckman selection model is used for Pakistan because, in an ordinary least squares regression, the impact of demographics and skills on wages can only be observed among those respondents whose wages are recorded. This can potentially

6.3 Socioemotional Skills of Formal and Informal Workers Differ

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Notes

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Hidden Potential