Interest in the role of noncognitive skills on successful life outcomes (such as academic performance) has increased in recent years. Policy makers in many countries have prioritized the learning of noncognitive skills in the school curriculum and training frameworks. Although studies in labor economics have provided important insights about the impact of noncognitive skills on earnings (e.g., Heckman, Stixrud and Urzua 2006; Lindqvist and Vestman 2011), solid evidence about how labor markets produce or facilitate the acquisition of noncognitive skills in different country settings is lacking. Moreover, existing studies rarely look at the relative influence of noncognitive and cognitive skills on earnings keeping in mind differences in college attainment.

This new comparative study explores how noncognitive skills contribute to the attainment of a college degree and cognitive skills performance and subsequently influence labor market outcomes.  It is based on a synthesis of the heterogeneous human capital theory, the Heckman’s economic theory of non-cognitive skills and the screening hypothesis which describe earnings differentials, though sometimes considered as rival theoretical frameworks, are closely related to each other. Using data from the new PIAAC survey of adult skills in 23 countries, and a cross-national and multi-level research design, it shows that noncognitive skills (defined as metacognitive abilities) have a significant impact on tertiary educational attainment and cognitive skills performance. Noncognitive skills also show a significant influence on labor market outcomes among prime-age adults (35-54), although the size and significance of this effect varies by country context. Interestingly, noncognitive skills exert stronger impact on labor market outcomes in Eastern European countries than other countries. The study also discusses the policy implications of the findings as they pertain to skills policy in higher education and training.

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