The Hidden Power of Schooling: Building Non-Cognitive Skills for Better Jobs
What if the key to better wages and personal growth in low- and middle-income countries lies not just in what students learn, but in how their personalities are shaped?
A new study, “The Effect of Compulsory Education on Non-Cognitive Skills: Evidence from Low- and Middle-Income Countries,” from German researchers Antonia K. Entorf and Thomas J. Dohmen, published in Economics of Education Review, explores how extending compulsory education influences non-cognitive skills in low- and middle-income countries (LMICs). This appears to be the first study to examine this relationship in such contexts, offering fresh insights into how education reforms shape both personality traits and labor market outcomes.
The study leverages cross-sectional data from the World Bank’s 2012-2013 initiative, analyzing educational reforms in four LMICs that expanded compulsory schooling. By examining within-country variations in years of mandatory education, the researchers found that increased compulsory education significantly alters non-cognitive skills. Specifically, it increases relative openness to experience and consequential thinking (or, the ability to consider alternative solutions and long-term consequences). Greater compulsory education, however, also decreases emotional stability, grit, patience, and a willingness to take risks. There were also decreases in hostile attribution bias (the tendency to interpret others’ actions as hostile). Economically speaking, the findings show that it boosts wages by approximately 9%, with 40% of this increase attributed to changes in non-cognitive skills, rather than traditional academic gains. These findings suggest that compulsory education does more than impart knowledge—it reshapes personality traits and preferences that can even influence economic success.
Non-cognitive skills, often called “soft skills,” encompass personality traits, attitudes, and preferences that affect how we interact with the world. Unlike cognitive skills, like math or literacy, non-cognitive skills include traits like openness, perseverance, and risk tolerance. These skills are critical for labor market success, since they influence professional skills like decision-making and adaptability. For example, openness to experience encourages creativity and problem-solving, while lower hostile attribution bias can improve workplace collaboration.
The study’s findings are a mixed bag. On the one hand, the increase in openness and consequential thinking is promising. These traits align with thoughtful decision-making more generally, along with adaptability within structured systems–those of us who are strong in these traits are more likely to balance innovation with respect for social and professional frameworks. The reduction in hostile attribution bias also supports harmonious social interactions.
But on the other hand, the (surprising) decrease in other traits raises concerns. One might argue that those particular traits, like emotional stability and patience, are indeed essential for maintaining a basic sense of order and respect—qualities that stabilize families and communities. A decline in grit, for one, would undermine the resilience needed to uphold community values in challenging environments. And a reduced risk-taking willingness might limit entrepreneurial spirit, which is evident in self-reliant individuals who contribute to economic growth. From this perspective, education reforms would ideally balance innovation with preserving the character traits that anchor societal stability.
Teachers in LMICs (and beyond) have a need to focus on non-cognitive skill development because these traits significantly impact students’ long-term success. This study shows that 40% of the 9% wage increase from extended schooling stems from changes in non-cognitive skills, directly demonstrating their economic value. But beyond wages, these skills shape how students navigate challenges and contribute to society in more abstract ways. Students need a sense of openness in order to embrace diverse perspectives, and they need less hostility bias for safer, more collaborative classroom environments.
Teachers are uniquely positioned to cultivate these skills through their classroom practices. Encouraging group projects can promote teamwork, while reflective exercises, in turn, boost consequential thinking. The study’s finding, however, that emotional stability and grit may decline suggests that teachers should be intentional about nurturing resilience and emotional regulation, perhaps through mentorship or structured goal-setting activities. By embedding non-cognitive skill development into their teaching, teachers can prepare their students not just for academic success, but for fulfilling and productive lives.