The purpose of this paper is to investigate linkages in US labor market between importance of specific skills, education, or training requirements, and private average salary for occupations not characterized as requiring a bachelor’s degree or higher.
Data set constructed that matches 474 less than bachelor’s occupations to private average salary, education, or training requirements category, and 35 specific skills. Statistical and regression analysis has been done to assess linkages between these variables.
Highest returns associated with cognitive skills, quantitative skills, and other core academic basic skills set followed by traditional blue-collar technical skills. Interpersonal skills and related social skills set exhibited weak, and sometimes negative, association with private average salary by occupation.
Study of only US labor market at single point of time, findings may not generalize to either non US markets or occupations requiring bachelor’s degree or higher.
Workers in the less than bachelor’s labor market have greater upside salary potential if they obtain postsecondary certificates or associates’ degrees and target occupations placing a greater importance on cognitive skills, quantitative skills, and core academic basic skills than if they target traditional blue-collar technical skill occupations.
Social policies to enhance earnings for workers lacking bachelor’s degrees must target improving core generic transferable academic skills as well as vocationally specific training.
This if the first study that links these many specific skills to salary variation across less than bachelor’s occupations.
