LABOR MARKET AND LIFE OUTCOMES

Given that educational investments respond to returns, it is critical to understand the labor-market and non‐labor-market returns to more education and better learning. This portfolio is one of the first to shed light on this topic in a low-income country by tracking over 6,000 students from childhood into young adulthood. Among other outcomes, our studies examine the impact of schooling on early adult labor force outcomes, occupational choice, and family formation, all stratified by gender and accounting for heterogeneity in access to schooling.

  Read the Summaries or Take a Deeper Dive

Three older Pakistani women wearing red, black, and teal, looking at a book

Parental Perceptions and Schooling

Image: U.S. Agency for International Development

This study investigates the accuracy and predictive power of parental perceptions. We examine how these perceptions change over time, and if parents are willing to update their perceptions when new information is provided.

    • Do parents have accurate perceptions of their child’s ability from a young age?

    • Are these perceptions predictive of later life outcomes?

    • Are parents willing to update their perceptions upon receiving new information?

    • Parental perceptions are highly correlated with their child’s test scores, even at a young age.

    • These perceptions are very predictive of later life outcomes, specifically years of completed schooling and probability of attending college.


Four young Pakistani women working at sewing machines

Cognitive and Socio-Emotional Skills in Low-Income Countries

Image: World Bank

It is difficult to accurately measure cognitive and socio-emotional skills. This study both provides a robust way to do so, and examines the relative value of different types of skills on the labor market.

    • How can we measure cognitive and socio-emotional skills of young adults in a low-income setting?

    • How are these different types of skills related to labor market outcomes?

    • We conducted a comprehensive assessment of skills that our sample is likely to bring to the labor force including individuals' socio-emotional skills.

    • For cognitive skills, we measured standard literacy and numeracy as well as skills useful for everyday life.

    • We find that both cognitive and socio-emotional skills are rewarded on the labor market.

    • Interestingly, socio-emotional skills seem to only matter for individuals who stayed in their village while for those who have migrated, their education level is what matters most.


Young Pakistani school girl wearing pink and white, kneeling on the floor writing on a piece of paper

Test Scores and Educational Opportunities

Image: Evidence for Policy Design

Data from five long-running panel studies in Ethiopia, India, Pakistan, Peru, and Vietnam have fascinating insights for learning and education trajectories for students in low-income countries.

    • How does academic performance in primary school relate to future years of schooling attainment and college attendance in low- and middle income countries?

    • How does this association differ by socioeconomic status (SES)?

    • When do SES test score gaps emerge?

    • Using data from long-running panel studies in multiple countries, we show that children with higher test scores at age 12 report more years of schooling and higher college attendance by age 22 in every country.

    • In every country, children from low SES backgrounds who are in the 80th percentile of test scores at age 12 have similar years of completed schooling at age 22 as children from high SES backgrounds who were at the 20th percentile of test scores.

    • In all five countries, there are substantial SES gaps in test scores by age 8, but the absolute magnitude of the SES gap does not change appreciably between the ages of 8 and 15.