Year: 2016
Type: report
Study design: Observational Study
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.
DOI: 10.3386/w22442
Authors: Francesco Agostinelli, Matthew Wiswall
Language: English
Subfield: Education
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2505635547