Wage determination in LAO PDR : cognitive and socio-emotional skills

Abstract

This research investigates the significance of cognitive skills and socio-emotional skills in explaining wage variability in less-developed countries such as Lao PDR. The analysis is using an expanded Mincerian model based on data collected from the Skills toward Employment and Productivity (STEP) Household Survey which is a study conducted by the World Bank (2012). The results revealed that for a cognitive skill there are positive and significant relationships between an additional year of schooling, years of work experience and wages. For socio-emotional variables, conscientiousness and agreeableness show a consistently positive relationship with wages and there is a negative correlation between decision making and wages.