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Research ArticleArticles
Open Access

Measuring Skills in Developing Countries

Rachid Laajaj and Karen Macours
Journal of Human Resources, October 2021, 56 (4) 1254-1295; DOI: https://doi.org/10.3368/jhr.56.4.1018-9805R1
Rachid Laajaj
Rachid Laajaj is an associate professor at the Universidad de Los Andes ()
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  • For correspondence: r.laajaj{at}uniandes.edu.co
Karen Macours
Karen Macours is a professor at Paris School of Economics and an INRA researcher
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    Figure 1 Relationships between Constructs and Other Indicators

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    Table 1

    Factor Loads of Noncognitive Items (Corrected for Acquiescence Bias)

    FactorLabelItems with Factor Loadings Higher than 0.3
    Factor 1CESD16 negatively phrased CESD
    Factor 2Conscientiousness10 Big Five personality questions (5 conscientiousness, 2 neuroticism, 1 agreeableness, 1 openness)
    Tenacity3 tenacity questions
    Factor 3Locus of control4 locus-of-control questions
    Metacognitive2 Metacognitive questions
    Other6 Big Five personality questions (3 agreeableness, 2 openness, 1 extraversion) 1 causes of poverty; 1 optimism
    Factor 4Causes of poverty5 reverse items of causes of poverty scale
    Factor 5Attitudes towards change4 attitude towards change
    Other5 Big Five personality questions (2 extraversion, 1 conscientiousness, 1 neuroticism, 1 openness)
    Locus of control with visual aid
    Factor 6CESD positive4 CESD positively phrased items
    Self-esteem2 self-esteem
    OtherRisk aversion, 1 attitude to change, 1 optimism, 1 tenacity
    • View popup
    Table 2

    Measures of Reliability and Internal Consistency

    ConstructTest–Retest CorrelationCronbach’s Alpha of TestCronbach’s Alpha of Retest# of ItemsConstructTest–Retest CorrelationCronbach’s Alpha# of Items
    Panel A: Naive ScorePanel B: Factor/IRT Method
    Cognitive0.830.820.816Cognitive (IRT)0.860.826
    Noncognitive0.540.760.7615Noncognitive (factor)0.560.706
    Technical0.310.450.485Technical (IRT)0.41NA1
    Decomposition by subconstruct:Decomposition by subconstruct:
    CognitiveCognitive using IRT
    Oral math questions0.600.700.739Oral math questions0.65Same as Panel 2A
    Reading0.820.770.7712Reading0.80
    Raven0.640.880.8836Raven0.61
    Math (timed)0.690.990.99139Math (timed)
    Digit span0.37NANA1Digit span
    Digit span backwards0.46NANA1Digit span backwards
    NoncognitiveNoncognitive six factors
    Locus of control0.490.560.629CESD0.430.8418
    Self-esteem0.320.280.364Conscientiousness/tenacity0.280.7517
    Causes of poverty0.400.820.869LOC/metacog./openness0.320.7119
    Attitude towards change0.370.370.435Causes of poverty (all negative)0.530.626
    Organization/tenacity/self-control0.260.420.486Attitudes towards change/beans0.380.6014
    Metacognitive ability0.190.460.544CESD positive/confidence/risk aversion0.300.5611
    Optimism0.220.170.263
    Risk aversion0.120.210.032
    Patience0.27NANA1
    Big 5 agreeableness0.250.390.314
    Big 5 extraversion0.230.330.374
    Big 5 conscientiousness0.330.510.266
    Big 5 neuroticism0.260.310.334
    Big 5 openness0.150.370.435
    CESD0.410.820.8521
    TechnicalTechnical using IRT
    Intercrop/compo st0.210.180.157Technical0.410.5432
    Maize0.260.290.247
    Banana0.170.190.176
    Soybean0.130.130.114
    Fertilizer0.290.440.5011
    • Notes: NA is not applicable; Cronbach’s alpha cannot be calculated when there is only one item. IRT is item response theory. In Panel B noncognitive variables have been demeaned to correct for the acquiescence bias.

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    Table 3

    Regressions of the Average Rank of Maize Yield across Seasons on Skill Constructs

    Skills Constructs Used as Regressors
    Naive ScoreImproved IndexMean Naive ScoreMean Improved IndexMean Improved IndexNaive ScoreImproved IndexMean Naive ScoreMean Improved IndexMean Improved Index
    (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
    Cognitive skills2.80***2 33***2.40***1.83**3.88***2.85**3.06**3.85***3.97***4.72***
    (0.802)(0.787)(0.869)(0.859)(0.832)(1.267)(1.267)(1.230)(1.267)(1.229)
    Noncognitive skills3.7g***3.54***4.60***4.Q3***5.00***3.72***3.72***4.27***3.95***4.32***
    (0.742)(0.737)(0.902)(0.892)(0.924)(0.782)(0.787)(1.015)(0.975)(0.978)
    Technical skills3.58***4.33***5.25***6.11***0.631.401.942.64**
    (0.911)(0.884)(1.100)(1.017)(1.013)(0.964)(1.203)(1.183)
    Observations900890900890890900890900890890
    R20.1070.1270.1270.1440.1060.3780.3860.3870.3950.390
    ControlsNoNoNoNoNoYesYesYesYesYes
    R2 adj. (w/o controls)0.1040.1240.1240.1410.1040.2690.2770.2800.2870.282
    F-test000001.16e-062.69e-083.27e-083.96e-101.95e-10
    F-test diff.0.7510.3570.2100.02990.4700.04900.2130.3290.6810.831
    • Notes: Dependent variable is the average rank of maize yields calculated over the four seasons (short rain 14 to long rain 16). Controls include education, literacy, gender, age and age squared of the farmer, land and cattle ownership, size and quality of the house, household size, whether the farmer is the household head, household head’s gender, village fixed effects, and enumerator-assignment fixed effects. Standard errors clustered at village level in parentheses. Significance: *p < 0.1, **p < 0.05, ***p < 0.01.

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    Table 4

    Regressions of the Average Rank of Maize Yield on Naive Skill Subconstructs

    (1)(2)(3)(4)(5)(6)
    Oral math questions-0.73-0.14-0.03-0.060.01-0.04
    (1.137)(1.186)(1.208)(1.200)(1.191)(1.193)
    Reading1.671.911.861.941.911.91
    (1.200)(1.207)(1.186)(1.192)(1.181)(1.203)
    Raven0.971.141.070.981.061.04
    (1.131)(1.172)(1.168)(1.173)(1.153)(1.182)
    Digit span0.600.540.590.590.680.65
    (0.779)(0.763)(0.773)(0.771)(0.751)(0.768)
    Math (timed)1.582.17*2.13*2.22*2.07*2.15*
    (1.221)(1.148)(1.148)(1.155)(1.146)(1.145)
    CESD2.34***
    (0.820)
    Locus of control-0.03
    (1.094)
    Self-esteem-0.36
    (0.810)
    Causes of poverty2.46**
    (0.940)
    Attitude towards change-0.53
    (0.764)
    Tenacity/organization2.73***
    (0.833)
    Metacognitive0.24
    (0.782)
    Optimism0.93
    (0.802)
    Risk aversion-0.72
    (0.714)
    Big 5 agreeableness0.951.86**
    (0.888)(0.834)
    Big 5 extraversion0.351.14
    (0.799)(0.752)
    Big 5 conscientiousness-1.231.19*
    (0.959)(0.712)
    Big 5 neuroticism0.591.87***
    (0.723)(0.643)
    Big 5 openness-0.130.75
    (0.852)(0.825)
    Other noncognitive0.32
    (0.763)
    Intercrop/compost0.06-0.21-0.21-0.22-0.26-0.21
    (0.834)(0.841)(0.840)(0.848)(0.839)(0.846)
    Maize0.661.091.211.161.011.18
    (0.853)(0.830)(0.839)(0.834)(0.847)(0.845)
    Banana0.740.850.640.630.610.70
    (0.913)(0.885)(0.875)(0.880)(0.865)(0.879)
    Soybean-0.06-0.26-0.19-0.21-0.23-0.21
    (0.820)(0.822)(0.827)(0.825)(0.815)(0.824)
    Fertilizer0.200.710.700.740.750.74
    (0.852)(0.848)(0.846)(0.845)(0.842)(0.845)
    Observations
    R2897899899899899899
    R2 adj.0.4080.3770.3730.3730.3770.372
    R2 adj. (w/o controls)0.1250.1010.1060.1020.1080.102
    F-test (cog.)0.149
    F-test (noncog.)0.0017
    F-test (tech.)0.878
    Test NC diff.0.0917
    • Notes: Dependent variable is the average rank of maize yields calculated over the four seasons (short rain 14 to long rain 16). Controls include education, literacy, gender, age and age squared of the farmer, land and cattle ownership, size and quality of the house, household size, whether the farmer is the household head, household head’s gender, village fixed effects, and enumerator-assignment fixed effects. NC is noncognitive. Standard errors clustered at village level in parentheses. Significance: *p < 0.1, **p < 0.05, ***p < 0.01.

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    Table 5

    Regressions of the Average Rank of Maize Yield on Improved Skill Subconstructs

    (1)(2)(3)(4)(5)(6)(7)
    Cognitive skills (IRT)2.58*3.53***4.13***3.63***2.95**4.09***4.00***
    (1.343)(1.271)(1.239)(1.290)(1.284)(1.244)(1.220)
    NC Factor 11.98**2.55***
    (CESD)(0.770)(0.769)
    NC Factor 2-0.171.45**
    (Conscientiousness/tenacity)(0.900)(0.722)
    NC Factor 30.401.67**
    (LOC/metacog./openness)(0.773)(0.725)
    NC Factor 42.59**3.48***
    (Causes of poverty, negative items)(1.088)(0.721)
    NC Factor 5-0.060.55
    (Attitude towards change/LOC_va)(0.741)(0.734)
    NC Factor 61.082.19***
    (CESD positive/self-esteem/risk av.)(0.723)(0.637)
    Technical skills (IRT)1.171.68*1.88*1.79*1.341.88*1.70*
    (0.969)(0.985)(0.968)(0.983)(0.962)(0.985)(0.995)
    Observations
    R2890890890890890890890
    R2 adj.0.3910.3800.3740.3740.3840.3710.377
    R2 adj. (w/o controls)0.2790.2700.2620.2630.2740.2590.267
    F-test (cog.)0.1210.1130.1110.1100.1190.1090.109
    F-test (noncog.)0.0575
    F-test (tech.)1.55e-05
    Test NC diff.0.230
    • Notes: Dependent variable is the average rank of maize yields calculated over the four seasons (short rain 14 to long rain 16). Controls include education, literacy, gender, age and age squared of the farmer, land and cattle ownership, size and quality of the house, household size, whether the farmer is the household head, household head’s gender, village fixed effects, and enumerator-assignment fixed effects. IRT is item response theory. LOC is locus of control. NC is noncognitive. Standard errors clustered at village level in parentheses. Significance: *p < 0.1, **p < 0.05, ***p < 0.01.

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    Table 6

    Regressions of Agricultural Practices on Skill Constructs

    Naive Scores Used as RegressorsMean Improved Indexes Used as Regressors
    SkillsManureMineral FertilizerHybrid SeedsMultiple WeedingHiring LaborMineral FertilizerManureHybrid SeedsMultiple WeedingHiring Labor
    Cognitive skills0.000.02-0.00-0.04*0.020.010.01-0.01−0.07***0.01
    (0.017)(0.017)(0.020)(0.022)(0.022)(0.019)(0.018)(0.025)(0.023)(0.028)
    Noncognitive skills0.03**-0.010.03**0.03**0.03*0.04***-0.010.05**0.05***0.04**
    (0.013)(0.015)(0.014)(0.015)(0.015)(0.015)(0.019)(0.019)(0.017)(0.019)
    Technical skills0.010.020.05***0.000.03*0.05***0.020.07***0.020.06***
    (0.013)(0.018)(0.015)(0.017)(0.016)(0.016)(0.019)(0.019)(0.016)(0.022)
    Observations900900900900900890890890890890
    R20.5200.3200.3710.2990.2660.5320.3190.3810.3060.276
    Mean0.6790.6060.4600.5760.5640.6790.6060.4600.5760.564
    R2 adj.0.4350.2000.2600.1760.1360.4480.1970.2710.1820.146
    R2 adj. (w/o controls)0.039-0.0010.0800.0050.0150.075-0.0010.1080.0190.023
    F-test0.1330.3850.0010.0660.0190.0000.7050.0000.0020.000
    F-test diff.0.3590.2460.1710.0290.9150.3360.6760.1250.0010.367
    • Notes: Dependent variables are the averages of binary variables calculated over the four seasons (short rain 14 to long rain 16). Controls include education, literacy, gender, age and age squared of the farmer, land and cattle ownership, size and quality of the house, household size, whether the farmer is the household head, household head’s gender, village fixed effects, and enumerator-assignment fixed effects. Standard errors clustered at village level in parentheses. Significance: *p < 0.1, **p < 0.05, ***p < 0.01.

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    Table 7

    Regressions of Agricultural Practices on Improved Skill Subconstructs

    SkillsMineral FertilizerManureHybrid SeedsMultiple WeedingHiring Labor
    Cognitive skills (IRT)0.010.03-0.00-0.04*0.01
    (0.019)(0.018)(0.021)(0.023)(0.024)
    NC Factor 10.01-0.000.01-0.010.00
    (CESD)(0.012)(0.011)(0.012)(0.013)(0.016)
    NC Factor 20.000.02*0.010.04***-0.02
    (Conscientiousness/tenacity)(0.014)(0.013)(0.015)(0.015)(0.015)
    NC Factor 30.010.00-0.01-0.010.02
    (LOC/metacog/openness)(0.014)(0.018)(0.014)(0.015)(0.019)
    NC Factor 40.00-0.05**0.01-0.000.02
    (Causes of poverty, negative items)(0.014)(0.019)(0.020)(0.021)(0.019)
    NC Factor 50.01-0.000.03**0.020.03**
    (Attitude towards change/LOC_va)(0.013)(0.016)(0.014)(0.014)(0.015)
    NC Factor 60.020.02**-0.000.02-0.01
    (CESD positive/self-esteem/risk av.)(0.014)(0.012)(0.013)(0.014)(0.015)
    Technical skills (IRT)0.020.010.04***0.000.04**
    (0.013)(0.017)(0.015)(0.015)(0.017)
    Observations890890890890890
    R20.5220.3250.3770.3150.274
    Mean0.6790.6060.4600.5760.564
    R2 adj.0.4320.1990.2610.1870.139
    R2 adj. (w/o controls)0.054-0.0010.0900.0230.019
    F-test (cog.)0.7030.1540.8440.0850.763
    F-test (noncog.)0.5480.1270.1200.0040.123
    F-test (tech.)0.1540.5290.0060.9840.034
    Test NC diff.0.9580.0920.3380.0350.163
    • Notes: Dependent variables are the averages of binary variables calculated over the four seasons (short rain 14 to long rain 16). Controls include education, literacy, gender, age and age squared of the farmer, land and cattle ownership, size and quality of the house, household size, whether the farmer is the household head, household head’s gender, village fixed effects, and enumerator-assignment fixed effects. IRT is item response theory. NC is noncognitive. Standard errors clustered at village level in parentheses. *p < 0.1, **p < 0.05, ***p < 0.01.

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    Table 8

    Test—Retest Correlations, Cronbach’s Alpha, and Influence of Enumerators by Subgroups

    Test–Retest CorrelationCronbach’s AlphaR2 of Enumerator FE
    Enumerator Assigned for Test and RetestBy Cognitive SkillBy Cognitive SkillBy Cognitive Skill
    Sample Split:SameDifferentBelow MedianAbove MedianBelow MedianAbove MedianAllBelow MedianAbove Median
    Cognitive0.910.820.670.680.540.480.040.050.08
    (0.000)[0.066][0.822][0.407]
    Noncognitive0.600.540.500.460.630.670.090.160.11
    (0.116)[0.000][0.000][0.029]
    Technical0.450.380.250.440.460.550.070.150.12
    (0.096)[0.000][0.000][0.008]
    • Notes: The p-values between parentheses indicate significance of the difference between same and different enumerator assigned for test and retest. R2 of enumerator fixed effects (FE) is the R2 of a regression of the improved construct on (randomly) assigned enumerator fixed effects. The p-values between brackets provide the significance levels of the R2 values. All p-values were obtained by randomization inference (10,000 repetitions).

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    Table 9

    Test-Retest Correlations as a Function of Order of the Module in the Survey Instrument

    Order in Retest
    Order in Test123p-Value All Coeff. Equal
    Cognitive
    10.870.900.87
    20.800.910.830.049
    30.840.870.83
    Noncognitive
    10.600.490.32
    20.570.620.570.008
    30.500.540.73
    Technical
    10.520.370.36
    20.510.300.470.505
    30.370.420.38
    • View popup
    Table 10

    Correlation of Different Skill Proxy Measures with Subscales Measuring Same Domain

    Correlation with SubconstructTest-Retest Correlation
    QuestionCorresponding SubconstructSelf-AssessmentOther Household MemberOther Village MemberAsking Different Person about Same PersonAsking Same Person about Different Person
    How smart are you, how quickly do you understand things?Raven0.100.160.110.060.08
    How well can you read and write?Read0.550.480.390.230.13
    How good are you at math?Math (timed)0.310.370.270.160.14
    How much does your life depend on your own action?Locus of control0.130.000.020.080.07
    How self-confident are you?Self-esteem0.130.030.060.110.11
    How open to change are you?Attitude towards change0.220.060.050.120.11
    How much do you think that you are someone who is organized?Big 5 conscientiousness0.180.010.120.060.12
    How hard working are you?Organization/tenacity/ self-control0.10-0.020.040.110.08
    How optimistic are you?Optimism0.110.050.020.080.10
    How patient are you?Patience-0.010.000.080.140.10
    How outgoing and social are you?Big 5 extraversion0.120.050.070.120.08
    How kind and sensitive are you?Big 5 agreeableness0.15-0.020.080.060.15
    How easily do you get stressed?Big 5 neuroticism-0.030.01-0.030.100.14
    How knowledgeable are you about farming techniques?Technical skills0.000.070.070.090.16
    • Notes: Table reports correlations between the 14 summary questions and the subconstruct most closely corresponding to each question. We use the demeaned measures of noncognitive subconstructs and the improved indexes of cognitive subconstructs and technical skills.

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    Table 11

    Skills Questions Asked to a Village Informant—Correlation with Skills Index and Prediction of Average Rank of Maize Yield

    Corresponding Skill IndexCorrelation with Corresponding Skill IndexExplanatory Variables: Question Asked to VillageRegressions with the Average Rank of Maize Yield as Dependent Variable
    Cognitive0.43Level of education4.73***1.36
    (1.30)(1.55)
    Noncognitive0.22Active/motivated2.341.73
    (2.06)(2.16)
    Technical0.15Agricultural knowledge6.43***5.89***
    (1.72)(1.74)
    ControlsVil. FEVil. FEAll
    Observations883883883
    R20.2390.3100.372
    F-test0.0000.000
    • Notes: Skill proxies obtained through village informant (CHW), scored on scale from 1 (low) to 3 (high). The right side of the table presents the correlation of the three questions asked to the village informant with the improved index of the corresponding skill, which the question intended to proxy. In the regressions, the dependent variable is the average rank of maize yields calculated over the four seasons (short rain 14 to long rain 16). Controls include education, literacy, gender, age and age squared of the farmer, land and cattle ownership, size and quality of the house, household size, whether the farmer is the household head, household head’s gender, village fixed effects (Vil. FE), and enumerator-assignment fixed effects. Standard errors clustered at village level in parentheses. Significance: *p < 0.1, **p < 0.05, ***p < 0.01.

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    Table 12

    Congruence of Big Five Factors Compared to United States—Comparisons with Other Countries

    ExtraversionAgreeablenessConscientiousnessNeuroticismOpennessAverage
    Kenya sampleAll0.640.230.460.630.810.55
    Cog. above median0.720.270.510.700.760.59
    Cog. below median0.520.460.070.480.550.42
    Colombia sampleAll0.570.600.030.740.600.51
    Cog. above median0.690.640.490.760.730.66
    Cog. below median0.540.560.320.650.480.51
    Other countriesSpain0.950.930.950.960.860.93
    Netherlands0.940.910.940.940.640.87
    Germany0.930.600.960.940.390.76
    • Notes: To have comparable results for different countries, the same subset of questions was kept, using Big Five data from other countries, and the factorial analysis uses varimax rotation. The absolute value of correlations between factor loads is used to calculate congruence. To maintain comparability the items are not corrected for acquiescence bias.

    • View popup
    Table 13

    Analysis of Reliability and Validity Applying a Similar Survey in Colombia

    Enumerator Assigned (Test-Retest Correlation)
    Test-Retest CorrelationCronbach’s Alpha of Test# of ItemsSameDifferentR2 of Enum. FEAcquiescence Bias
    Naive score
    Cognitive0.780.6260.750.750.04
    Noncognitive0.700.70150.730.670.040.37
    Technical0.500.3370.510.500.13
    Improved score
    Cog. (IRT and factor)0.940.8160.940.930.05
    Noncognitive (factor)0.640.6970.660.610.04
    Technical (IRT)0.6210.660.580.21
    • Notes: IRT is item response theory.

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Journal of Human Resources: 56 (4)
Journal of Human Resources
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2 Oct 2021
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Measuring Skills in Developing Countries
Rachid Laajaj, Karen Macours
Journal of Human Resources Oct 2021, 56 (4) 1254-1295; DOI: 10.3368/jhr.56.4.1018-9805R1

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Measuring Skills in Developing Countries
Rachid Laajaj, Karen Macours
Journal of Human Resources Oct 2021, 56 (4) 1254-1295; DOI: 10.3368/jhr.56.4.1018-9805R1
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  • Article
    • Abstract
    • I. Introduction
    • II. Setting, Sample and the Questionnaire Design
    • III. Reliability and Validity of Different Skills Constructs
    • A. Exploratory Factor Analysis, Acquiescence Bias Corrections, and Item Response Theory
    • B. Reliability and Construct Validity
    • C. Predictive Validity
    • IV. Further Understanding Measurement Challenges
    • V. From Kenya to Colombia and Beyond: Similar Results in Different Contexts
    • VI. Conclusions
    • Footnotes
    • References
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