Abstract

This paper summarizes arguments driving education policy discussion about a relationship between the growth of the economy and early childhood cognitive and non-cognitive skills. The first finding is that rising Harmonized Test Scores, including PISA test scores, do not contribute to labor productivity per person in high income courtiers in Asia, Europe, and North America. On the other hand, the test scores can drive the economy in high income countries in Africa, Caribbean, Middle East, and South America; upper middle-income countries in Africa, Caribbean, Middle East, Ocean, and South America; low middle-income countries; and low middle-income countries more than high-income countries. The second finding is that rising Harmonized Test Scores (HTS) are likely to connect to labor productivity per hour. By a simple regression by taking a logarithm, this study investigates the relationship between labor productivity per hour and the Program for International Student Assessment (PISA) test scores. The coefficient of determination is 0.60. It is not enough to get a sufficient result. Accordingly, the study discusses how labor productivity per hour in high income courtiers in Asia, Europe, and North America is associated with non-cognitive skills. In the digital economic phase, it seems that integrated cognitive skills and non-cognitive skills contribute to labor productivity per hour. We recommend that policymakers should invest in early childhood to not only maintain or improve PISA test scores but also to improve non-cognitive skills associated with psychology. Overall, this paper presents analysis and empirical results, aimed at building a more future-oriented education policy. The audience for this paper includes policymakers, educators, and economists.

Keywords: labor productivity, cognitive and non-cognitive skills, development of economics and education, education policy in digital economy.

JEL Classification: J01, I25, I28.

Cite as: Yoshimori, H., Yoshimori, M. (2022). An Education Gift — Integrated Cognitive and Non-Cognitive Skills — for Future Generations to Grow the Economy in the Digital Phase. SocioEconomic Challenges, 6(2), 5-18. https://doi.org/10.21272/sec.6(2).5-18.2022

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Brooks-Gunn J., Britto P.R., and Brady C. (1999). Struggling to make ends meet: Poverty and child development. Mahwah, NJ: Lawrence Erlbaum Associates, 279–304. [Link].
2. Carneiro P., and Heckman J.J. (2003). Inequality in America: What Role for Human Capital Policy? MIT Press, 77-240. [Link].
3. Deming D.J. (2017). The Growing Importance of Social Skills in the Labor Market. The Quarterly Journal of Economics, 132(4), 1593-1640. [Link].
4. Karoly L.A., Kilburn M.R., Cannon J.S. (2005). Early childhood interventions: Proven results, future promise, RAND Corporation. [Link].
5. Hanushek, E. A., & Woessmann, L. (2012). Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation. Journal of Economic Growth, 17(4),  267-321 Link].
6. Hanushek, EA., and Kimko DD. (2000). Schooling, Labor Force Quality, and the Growth of Nations.” American Economic Review, 90 (5), 1184-1208. [Link].
7. Hanushek, E.A. and Woessmann, L. (2010a). Education and Economic Growth. In: Penelope Peterson.” International Encyclopedia of Education, 2, 245-252. [Link].
8. Hanushek, E.A. and Woessmann, L. (2010b). The Cost of Low Educational Achievement in the European Union.” European Commission, EENEE Analytical Report 7. [Link].
9. Heckman, J., Pinto, R., & Savelyev, P. (2013). Understanding the Mechanisms through which an Influential Early Childhood Program Boosted Adult Outcomes. The American Economic Review, 103(6), 2052–2086. [Link].
10. Hanushek, E. A. and Woessmann. (2020). A quantitative look at the economic impact of the European Union’s Educational Goals. Education Economics, 28(3), 225-244, [Link].
11. Heckman, J.J. and Rubinstein Y. (2001. The importance of noncognitive skills: Lessons from the good testing program. The American Economic Review, 91(2), 145-149. [Link].
12. Heckman J.J. (2006). Skill formation and the economics of investing in disadvantaged children. Science, 312, 1900-1902. [Link].
13. Ichino, Andrea. and Winter-Ebmer, R. (2004). The Long-Run Educational Cost of World War II,” Journal of Labor Economics, 22. [Link].
14. UNESCO. (2020). “UNESCO Global Education Monitoring Report: Inclusion and education: all means all,” UNESCO. [Link].
15. OECD. (2010). “The High cost of low educational performance: The long-run economic impact of improving PISA outcomes.” OECD. [Link].
16. Morandini M.C., Thum-Theysen A. and Vandeplas A. (2020). Facing the Digital Transformation: are Digital Skills Enough? European Commission, Economic Brief 054. [Link].
17. Psacharopoulos G., and Patrinos H.A. (2018). Returns to Investment in Education: A Decennial Review of the Global Literature. Education Economics, 26(5), 445-458. [Link].
18. Wilk M.B. and Gnanadesikan, R. (1968). Probability Plotting Methods for the Analysis of Data. Biometrika, Biometrika Trust, 55 (1), 1-17. [Link].