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20271- Public Economics
Lecture 11-12
A. Casarico
The technology of skill formation
Identify a technology of skill formation which is able to
explain six facts from recent empirical literature (Cuhna
and Heckman, 2007)
Fact 1
Ability gaps open up at early ages
Children of the NLSY
Average Standardized Score for PIAT Math by
Permanent Income Quartiles
The technology of skill formation
Fact 2
Evidence of sensitive and critical periods in the developing
of a child
–
On average if a second language is learned before
age 12, the child speaks it without an accent;
–
If syntax and grammar are not acquired early on,
they appear to be very difficult to learn on in life.
–
IQ
The technology of skill formation
Fact 3
High returns to remedial investments in young (rather than
adolescent) disadvantaged children
- Perinatal interventions that reduce fetal exposure to
alcohol and nicotine have substantial long-term effects
on cognition, socioemotional skills and health
The technology of skill formation
Fact 4
If early investments are not followed up by later
investments, their effects over time are reduced
–
Investments appear to be complementary and
require follow up to be effective.
The technology of skill formation
Fact 5
Effects of credit constraint on a child’s adult outcomes depend on
the age at which they bind for the child’s family
– Augmenting family income or reducing college tuition at
the stage of the life cycle when a child goes to college
does not go far in compensating for low levels of previous
investment.
– There is some evidence that credit constraints operating
in the early years have effects on adult ability and
schooling outcomes.
The technology of skill formation
Fact 6
Non cognitive skills foster cognitive skills
- Emotionally nurturing environments produce more
capable learners