Estimating the Technology of Children's Skill Formation / Francesco Agostinelli, Matthew Wiswall.

Format:

Book

Author/Creator:

Agostinelli, Francesco.

Contributor:

National Bureau of Economic Research.

Wiswall, Matthew.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22442.

NBER working paper series no. w22442

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

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.

Notes:

Print version record

July 2016.