ABSTRACT
Using cross-sectional data from 2013 for the NLSY97 cohort, we find that the largest wage differentials between high school and college graduates were observed for youths who scored in the second and third quartiles of the ASVAB reading and mathematical aptitude scales. Returns to cognitive aptitude were positive and significant for the first and second ASVAB quartiles. These results suggest that youths who scored in the low to middle range of the ASVAB benefit the most from investment in cognitive skill development and higher education. Public policy that support such investments can improve individual economic outcomes and social inequality.
Keywords
Aptitude, achievement, education, wages, NLSY97