Estimating the Technology of Children's Skill Formation
Open accessAbstract
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.
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Marginal returns for investing in children's skills in early childhood are higher for children with lower initial skills.
“This channel would be consistent with the observation that marginal returns for investing in children's skills in early childhood are higher for children with lower initial skills (Agostinelli and Wiswall 2016).”
From Educational Inequality* (2022) · cites this paper as Agostinelli and Wiswall 2016
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- Authors
- Agostinelli, F., & Wiswall, M.
- Affiliations
- National Bureau of Economic Research (US)
- Corresponding author
- Wiswall, Matthew
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2016-07
- OpenAlex
- W2505635547
- Cited by
- 83
- References
- 49
- Citations by year
- 2026: 1 · 2025: 9 · 2024: 14 · 2023: 9 · 2022: 9 · 2021: 4 · 2020: 12 · 2019: 6 · 2018: 10 · 2017: 4 · 2016: 2 · 2015: 2
- Type
- report
- Language
- en
- Open access
- green
- doi.org
- Locations
- National Bureau of Economic Research (publishedVersion)
- Topics
- Social Sciences › Education › Early Childhood Education and Development
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Social Sciences › Education › School Choice and Performance
- Keywords
- parental investment, cognitive skills, early childhood, dynamic latent factor model, skill complementarity, identification
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