[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/22442.html
   My bibliography  Save this paper

Estimating the Technology of Children's Skill Formation

Author

Listed:
  • Francesco Agostinelli
  • Matthew Wiswall
Abstract
In this paper we study the process of children’s skill formation. Using a dynamic latent factor structure, we show how measurement restrictions on observed measures aid the identification of skill technology features. We then use our identification results to develop and estimate the joint dynamic process of latent investment and skill development, allowing for static and dynamic complementarities in skill production between parental investments and children’s skills. Using data for the United States, we estimate that parental investments are particularly productive in producing cognitive skills during early childhood (ages 5-6). Moreover, we find that the marginal productivity of investments in this period is substantially higher for children with lower existing skills, suggesting the optimal targeting of interventions to disadvantaged young children.

Suggested Citation

  • Francesco Agostinelli & Matthew Wiswall, 2016. "Estimating the Technology of Children's Skill Formation," NBER Working Papers 22442, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22442
    Note: CH
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w22442.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Attanasio, Orazio & Cattan, Sarah & Fitzsimons, Emla & Meghir, Costas & Rubio-Codina, Marta, 2015. "Estimating the Production Function for Human Capital: Results from a Randomized Control Trial in Colombia," IZA Discussion Papers 8856, Institute of Labor Economics (IZA).
    2. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    3. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2003. "Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College," NBER Working Papers 9546, National Bureau of Economic Research, Inc.
    4. Elizabeth M. Caucutt & Lance Lochner & Youngmin Park, 2017. "Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 102-147, January.
    5. Katrine V. Løken & Magne Mogstad & Matthew Wiswall, 2012. "What Linear Estimators Miss: The Effects of Family Income on Child Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 1-35, April.
    6. Carneiro, Pedro & Hansen, Karsten T. & Heckman, James J., 2003. "Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice," IZA Discussion Papers 767, Institute of Labor Economics (IZA).
    7. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    8. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2016. "Transfers to Households with Children and Child Development," Economic Journal, Royal Economic Society, vol. 126(596), pages 136-183, October.
    9. Pedro Carneiro & Karsten T. Hansen & James J. Heckman, 2003. "2001 Lawrence R. Klein Lecture Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 361-422, May.
    10. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    11. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    12. Timothy N. Bond & Kevin Lang, 2013. "The Evolution of the Black-White Test Score Gap in Grades K–3: The Fragility of Results," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1468-1479, December.
    13. Timothy N. Bond & Kevin Lang, 2018. "The Black–White Education Scaled Test-Score Gap in Grades K-7," Journal of Human Resources, University of Wisconsin Press, vol. 53(4), pages 891-917.
    14. Chamberlain, Gary & Griliches, Zvi, 1975. "Unobservables with a Variance-Components Structure: Ability, Schooling, and the Economic Success of Brothers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 422-449, June.
    15. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    16. Raquel Bernal, 2008. "The Effect Of Maternal Employment And Child Care On Children'S Cognitive Development," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1173-1209, November.
    17. Chamberlain, Gary, 1977. "Education, income, and ability revisited," Journal of Econometrics, Elsevier, vol. 5(2), pages 241-257, March.
    18. Goldberger, Arthur S, 1972. "Structural Equation Methods in the Social Sciences," Econometrica, Econometric Society, vol. 40(6), pages 979-1001, November.
    19. Flávio Cunha & Irma Elo & Jennifer Culhane, 2013. "Eliciting Maternal Expectations about the Technology of Cognitive Skill Formation," NBER Working Papers 19144, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesco Agostinelli & Matthew Wiswall, 2016. "Identification of Dynamic Latent Factor Models: The Implications of Re-Normalization in a Model of Child Development," NBER Working Papers 22441, National Bureau of Economic Research, Inc.
    2. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    3. Francesconi, Marco & Heckman, James J, 2015. "Symposium on Child Development and Parental Investment: Introduction," Economics Discussion Papers 16868, University of Essex, Department of Economics.
    4. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    5. Kelly Foley, 2019. "The gender gap in university enrolment: Do parents play a role beyond investing in skills?," Canadian Journal of Economics, Canadian Economics Association, vol. 52(2), pages 441-489, May.
    6. Elizabeth M. Caucutt & Lance Lochner & Youngmin Park, 2017. "Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 102-147, January.
    7. Jorge Rodriguez, 2017. "Understanding the Effects of Income and Child Care Subsidies on Children's Academic Achievement," 2017 Papers pro1077, Job Market Papers.
    8. Orazio Attanasio & Sarah Cattan & Emla Fitzsimons & Costas Meghir & Marta Rubio-Codina, 2020. "Estimating the Production Function for Human Capital: Results from a Randomized Controlled Trial in Colombia," American Economic Review, American Economic Association, vol. 110(1), pages 48-85, January.
    9. Armin Falk & Fabian Kosse & Pia Pinger & Hannah Schildberg-Hörisch & Thomas Deckers, 2021. "Socioeconomic Status and Inequalities in Children’s IQ and Economic Preferences," Journal of Political Economy, University of Chicago Press, vol. 129(9), pages 2504-2545.
    10. Heckman, James J. & Humphries, John Eric & Veramendi, Gregory & Urzua, Sergio, 2014. "Education, Health and Wages," IZA Discussion Papers 8027, Institute of Labor Economics (IZA).
    11. Bernal, Pedro & Mittag, Nikolas & Qureshi, Javaeria A., 2016. "Estimating effects of school quality using multiple proxies," Labour Economics, Elsevier, vol. 39(C), pages 1-10.
    12. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    13. Huebener, Mathias & Kuehnle, Daniel & Spiess, C. Katharina, 2019. "Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data," Labour Economics, Elsevier, vol. 61(C).
    14. Gloria Moroni & Cheti Nicoletti & Emma Tominey, 2019. "Child Socio-Emotional Skills: The Role of Parental Inputs," Working Papers 2019-038, Human Capital and Economic Opportunity Working Group.
    15. Uta Bolt & Eric French & Jamie Hentall-MacCuish & Cormac O'Dea, 2021. "The intergenerational elasticity of earnings: exploring the mechanisms," IFS Working Papers W21/07, Institute for Fiscal Studies.
    16. Veramendi, Gregory & Urzúa, Sergio, 2011. "The Impact of Out-of-Home Childcare Centers on Early Childhood Development," IDB Publications (Working Papers) 3065, Inter-American Development Bank.
    17. Thiel, Hendrik & Thomsen, Stephan L., 2013. "Noncognitive skills in economics: Models, measurement, and empirical evidence," Research in Economics, Elsevier, vol. 67(2), pages 189-214.
    18. Kelly Foley & Giovanni Gallipoli & David A. Green, 2014. "Ability, Parental Valuation of Education, and the High School Dropout Decision," Journal of Human Resources, University of Wisconsin Press, vol. 49(4), pages 906-944.
    19. Sneha Elango & Jorge Luis García & James J. Heckman & Andrés Hojman, 2015. "Early Childhood Education," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 235-297, National Bureau of Economic Research, Inc.
    20. Samuel Berlinski & Maria Marta Ferreyra & Luca Flabbi & Juan David Martin, 2024. "Childcare Markets, Parental Labor Supply, and Child Development," Journal of Political Economy, University of Chicago Press, vol. 132(6), pages 2113-2177.

    More about this item

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:22442. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.