@TechReport{iza:izadps:dp8874, author={New, Sonja C. de and Schurer, Stefanie and Leung, Felix}, title={Testing the Validity of Item Non-Response as a Proxy for Cognitive and Non-Cognitive Skills}, year={2015}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={8874}, url={https://www.iza.org/index.php/publications/dp8874}, abstract={Cognitive and non-cognitive skills are important determinants of labor market outcomes, but are often unobserved. We propose a proxy for these skills derived from item non-response information and a procedure to test its validity. Exploiting a unique data-collection feature of an Australian survey, we find that fraction answered on a self-completion questionnaire fulfils all necessary requirements to be a valid proxy for cognitive skills and outperforms alternative proxies derived from paradata. Fraction answered captures a third of the effect of cognitive ability on wages and education. We provide a simple solution to reduce omitted-variable biases by up to 11%.}, keywords={paradata;item non-response;proxy-variable approach;cognitive ability;non-cognitive skills;wages;education}, }