nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2021‒06‒28
two papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Wage premia for skills: the complementarity of cognitive and non-cognitive skills By Marta, Palczyńska
  2. COVID-19 in South Africa: An Intersectional Perspective based on Socio-economic Modeling and Indigenous Knowledge Base By Khan, Haider

  1. By: Marta, Palczyńska
    Abstract: Purpose - The main purpose of this paper is to assess the degree of complementarity between cognitive skills and non-cognitive skills, and to evaluate their joint impact on individual wages. Design/methodology/approach – The author uses a survey representative of the Polish working-age population with well-established measures of cognitive and non-cognitive skills. Findings - Non-cognitive skills are important in the labour market, not only as separate factors that influence wages, but as complements to cognitive skills. Specifically, the analysis showed that the more neurotic an individual is, the lower his or her returns to cognitive skills are. Social skills were not shown to be complementary to cognitive skills in Poland, unlike the recent results in the United States. Originality/value - To the best of author’s knowledge, this is the first study to provide evidence that neurotic individuals have lower returns to cognitive skills. It also tests the existence of the complementarity between social and cognitive skills.
    Keywords: earnings, cognitive skills, non-cognitive skills, social skills, gender differences
    JEL: J16 J24 J31
    Date: 2020
  2. By: Khan, Haider
    Abstract: Abstract This paper examines pandemic relief and development policies through the case study of South Africa during COVID-19 in order to create a broader understanding about problems facing developing countries during such crises. Specifically, it evaluates the strengths and limits of the government’s current policy approach. Furthermore, it proposes a more socially relevant quantitatively derived package through a model based counterfactual policy experiment that can connect immediate relief with long-run development policies from a socially embedded capabilities perspective. The paper uses an intersectional approach and utilizes Social Accounting Matrix (SAM) to identify the production sectors that are not only the most impacted and are the most vulnerable, but also have room for maximal future development. It also makes a preliminary attempt to posit possible improvements in people’s well-being based on indigenous knowledge. Indigenous knowledge systems can be integrated with modified existing public health models. Our multisectoral analysis highlights the importance of the indigenous knowledge base in evaluations of people’s well-being. Our study finds specific production activities such as agriculture, construction, land transport, mining and real estate sectors to be labor-intensive and vital to the economy. With proper modifications, the methodology and framework used for South Africa will be applicable for other developing countries. This will help direct immediate resources strategically and efficiently to key areas of the developing economies for optimal development from a capabilities perspective.
    Keywords: Keywords: Covid-19, socially embedded capabilities, intersectionality, Social Accounting Matrix, Development, South Africa
    JEL: A1 A2 O1
    Date: 2021–06–16

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