Men and Women’s Return to Cognitive Skills. : Evidence from PIAAC.

Sammanfattning: Do men and women receive different pay-offs, in terms of wage, from cognitive skills in the Swedish labor market? To answer this, the classical Mincer equation is expanded with a variable for cognitive skills (literacy and numeracy) and an interaction term between being a male and cognitive skills to be able to distinguish the actual difference in pay-off. I use data from OECD’s PIAAC survey of adult skills, which provides a unique opportunity to examine gender pay-off differences concerning cognitive skills. The results show that men have a larger pay-off than women once occupation is sufficiently controlled for