The Effects of Cognitive and Non-Cognitive Abilities on Labor’s Income in China

Income, as a core indicator for workers to enhance their personal income levels, is crucial for improving one's life and realizing personal value. Previous research has mostly focused on the impact of traditional factors such as education and health, as well as cognitive skills like mathematical and logical abilities and intelligence levels, on wage income, while neglecting the role of non-cognitive skills such as workers' psychology and personality. Based on classic human capital theory and new human capital theory, this paper reviews relevant literature on human capital, cognitive abilities, and the income effects of non-cognitive abilities, and analyzes from a theoretical perspective the channels through which cognitive and non-cognitive abilities influence wage income. The study finds that both cognitive and non-cognitive abilities of workers have a significant positive effect on their wage income levels.