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Evidence from developed country data suggests that cognitive and non-cognitive skills contribute to improved labor market outcomes. This paper tests this hypothesis in a developing country by using an individual-level data set from Peru that incorporates modules to measure cognitive and non-cognitive skills. The paper estimates a structural latent model with unobserved heterogeneity to capture full ability rather than just measured skill. It also applies standard ordinary least squares techniques for comparison. The analysis confirms that cognitive and non-cognitive skills are positively correlated with a range of labor market outcomes in Peru. In particular, cognitive skills positively correlate with wages and the probability of being a wage worker, white-collar, and formal worker, with verbal fluency and numeric ability playing particularly strong roles. The results are robust to methodology. The patterns are less uniform for non-cognitive skills. For instance, perseverance of effort (grit) emerges strongly for most outcomes regardless of methodology. However, plasticity-an aggregation of openness to experience and emotional stability-is only correlated with employment, and only when using the structural latent model. The ordinary least squares method also finds that the disaggregated non-cognitive skills of kindness, cooperation, emotional stability, and openness to experience emerge significantly, mostly for the wage estimates. The different results derived from the ordinary least squares and the structural model with latent skills suggest strong measurement bias in most non-cognitive skills measurement. These findings, although only correlational because of the use of a single cross-section, suggest that recent efforts by the Peruvian government to incorporate non-cognitive skill development into the school curriculum are justified.

Access & Equity in Basic Education --- Cognitive --- Education --- Education for All --- Educational Sciences --- Effective Schools & Teachers --- Employment --- Latent Skills --- Non-Cognitive Skills --- Primary Education --- Schooling --- Structural Model --- Wages

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MODELS, STRUCTURAL --- Extremities --- Bionics --- CYBERNETICS --- physiology --- Bionics. --- Cybernetics. --- Models, Structural. --- 612.76 --- Model, Structural --- Structural Model --- Structural Models --- Cybernetic --- Bionic --- Cybernetics --- Models, Biological --- physiology. --- Locomotie. Beweging. Lichaamsmechanica. Biomedische ingenieurstechnieken --- Models, Structural --- Extremities - physiology

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Chemical structure --- fysicochemie --- Chemistry, Physical and theoretical --- Molecules --- Chimie physique et théorique --- Molécules --- MODELS, STRUCTURAL, physics --- Chemistry, Physical --- Models, Structural. --- Chemistry, Physical. --- 539.19 --- #WSCH:MODS --- Physical Chemistry --- Chemistries, Physical --- Physical Chemistries --- Model, Structural --- Structural Model --- Structural Models --- Physics of single molecules --- 539.19 Physics of single molecules --- Chimie physique et théorique --- Molécules --- Models, Structural --- Chemistry, Theoretical --- Physical chemistry --- Theoretical chemistry --- Chemistry --- Molecular structure. --- Crystal structure --- Spectra --- Spectroscopy --- Symmetry --- Wave function

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Antibiotics --- Models, Structural --- Antibiotiques --- pharmacodynamics --- Anti-Bacterial Agents --- Models, Structural. --- 577.18 --- 577.1 --- Anti-infective agents --- Microbial metabolites --- Allelopathic agents --- Antibiosis --- Pharmaceutical microbiology --- Phytoncides --- Model, Structural --- Structural Model --- Structural Models --- pharmacology. --- Chemical bases of life. Biochemistry and bio-organic chemistry generally --- Antibiotics. --- 577.1 Chemical bases of life. Biochemistry and bio-organic chemistry generally --- 577.18 Antibiotics --- pharmacodynamics. --- pharmacology --- Molecular biology --- Pharmacology. Therapy --- Infectious diseases. Communicable diseases

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fysicochemie --- Organic reaction mechanisms and kinetics --- Molecular orbitals --- Orbites moléculaires --- Models, Structural. --- 539.193 --- #WSCH:MODS --- Model, Structural --- Structural Model --- Structural Models --- General properties. Configuration and geometry of molecules. Bond lengths and angles in molecules. Moments etc. --- Molecular orbitals. --- Quantumchemie --- Quantumchemie. --- 539.193 General properties. Configuration and geometry of molecules. Bond lengths and angles in molecules. Moments etc. --- Orbites moléculaires --- Models, Structural --- Orbitals, Molecular --- Chemical bonds --- Electrons --- Molecules --- Overlap integral --- Quantum chemistry --- Valence (Theoretical chemistry) --- Wave mechanics --- General properties. Configuration and geometry of molecules. Bond lengths and angles in molecules. Moments etc