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PreprintCited by 1,325Intergenerational and Educational Inequality StudiesSchool Choice and PerformanceHigher Education Research Studies

Human Capital Policy

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Carneiro, Pedro Manuel, Heckman, James J.·2003·SSRN Electronic Journal
DOI 10.2139/ssrn.434544
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Abstract

This paper considers alternative policies for promoting skill formation that are targeted todifferent stages of the life cycle. We demonstrate the importance of both cognitive andnoncognitive skills that are formed early in the life cycle in accounting for racial, ethnic andfamily background gaps in schooling and other dimensions of socioeconomic success. Mostof the gaps in college attendance and delay are determined by early family factors. Childrenfrom better families and with high ability earn higher returns to schooling. We find only alimited role for tuition policy or family income supplements in eliminating schooling andcollege attendance gaps. At most 8% of American youth are credit constrained in thetraditional usage of that term. The evidence points to a high return to early interventions anda low return to remedial or compensatory interventions later in the life cycle. Skill and abilitybeget future skill and ability. At current levels of funding, traditional policies like tuitionsubsidies, improvements in school quality, job training and tax rebates are unlikely to beeffective in closing gaps.

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  • Parents have a crucial impact on the acquisition of both cognitive and noncognitive skills, in part through transmission of their own skills and in part through their engagement and interaction with the child.

    “Carneiro and Heckman (2003), Heckman and Masterov (2007), and Cunha et al. (2006) show that parents have a crucial impact on the acquisition of both cognitive and noncognitive skills, in part through transmission of their own skills and in part through their engagement and interaction with the child.”

    From Educational Inequality* (2022) · cites this paper as Carneiro and Heckman (2003)

    The Early Childhood Investments section says parental inputs are important correlates of cognitive and noncognitive skills. Family Income and Enrollment in College describes parents shaping children’s expectations and assisting their studies, while Sources of Skill Differences discusses parental environment and genes. But Early Childhood Investments also says the exact causal mechanisms are not well understood, so the claim overstates how firmly this paper establishes the two specified routes of influence. No page numbers are available in our copy. (LLM, conf=0.84)

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Authors
Carneiro, P. M., & Heckman, J. J.
Affiliations
  • IZA - Institute of Labor Economics (DE)
  • National Bureau of Economic Research (US)
Corresponding author
Carneiro, Pedro Manuel
ORCID
Venue
SSRN Electronic Journal
Publisher
Elsevier BV
Published
2003
ISSN
1556-5068 (ISSN-L)
DOI
10.2139/ssrn.434544
OpenAlex
W2147299362
Cited by
1,325
References
0
Citations by year
2026: 5 · 2025: 18 · 2024: 18 · 2023: 21 · 2022: 22 · 2021: 28 · 2020: 28 · 2019: 23 · 2018: 28 · 2017: 49 · 2016: 74 · 2015: 64 · 2014: 89 · 2013: 101 · 2012: 103
Type
posted content
Language
en
Open access
Locations
  • SSRN Electronic Journal (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • Econstor (Econstor) (submittedVersion)
  • UCL Discovery (University College London) (submittedVersion)
Funders
  • Harvard University
  • Rheinische Friedrich-Wilhelms-Universität Bonn
  • Michigan Diabetes Research Center, University of Michigan
Topics
  • Social Sciences › Sociology and Political Science › Intergenerational and Educational Inequality Studies
  • Social Sciences › Education › School Choice and Performance
  • Social Sciences › Education › Higher Education Research Studies
Keywords
human capital policy, skill development, cognitive skills, non-cognitive skills, family background, college attendance, returns to education, tuition policy, credit constraints, early intervention, remedial education, life cycle

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