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The Technology of Skill Formation

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  • James Heckman
  • Flavio Cunha

Abstract

This paper develops a model of skill formation that explains a variety of findings established in the child development and child intervention literatures. At its core is a technology that is stage-specific and that features self productivity, dynamic complementarity and skill multipliers. Lessons are drawn for the design of new policies to alleviate the consequences of the accident of birth that is a major source of human inequality.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.97.2.31
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 97 (2007)
Issue (Month): 2 (May)
Pages: 31-47

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Handle: RePEc:aea:aecrev:v:97:y:2007:i:2:p:31-47

Note: DOI: 10.1257/aer.97.2.31
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References

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  1. Cunha, Flavio & Heckman, James J. & Schennach, Susanne, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," IZA Discussion Papers 4702, Institute for the Study of Labor (IZA).
  2. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
  3. Bénabou, Roland, 2000. "Tax And Education Policy In A Heterogeneous Agent Economy: What Levels Of Redistribution Maximize Growth And Efficiency?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2446, C.E.P.R. Discussion Papers.
  4. Hansen, Karsten T. & Heckman, James J. & Mullen, K.J.Kathleen J., 2004. "The effect of schooling and ability on achievement test scores," Journal of Econometrics, Elsevier, Elsevier, vol. 121(1-2), pages 39-98.
  5. Meghir, Costas & Palme, Marten, 2001. "The Effect of a Social Experiment in Education," Working Paper Series in Economics and Finance 0451, Stockholm School of Economics.
  6. Stephen V. Cameron & Christopher Taber, 2004. "Estimation of Educational Borrowing Constraints Using Returns to Schooling," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 112(1), pages 132-182, February.
  7. John M. Barron & Mark C. Berger & Dan A. Black, 2006. "Selective Counteroffers," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(3), pages 385-410, July.
  8. Carneiro, Pedro & Heckman, James & Masterov, Dimitriy, 2004. "Labor market discrimination and racial differences in premarket factors," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2005:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Janet Currie & Duncan Thomas, 2000. "School Quality and the Longer-Term Effects of Head Start," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 755-774.
  10. S. Rao Aiyagari & Jeremy Greenwood & Ananth Seshadri, 1999. "Efficient investment in children," Discussion Paper / Institute for Empirical Macroeconomics 132, Federal Reserve Bank of Minneapolis.
  11. Flavio Cunha & James J. Heckman & Lance Lochner & Dimitriy V. Masterov, 2005. "Interpreting the Evidence on Life Cycle Skill Formation," NBER Working Papers 11331, National Bureau of Economic Research, Inc.
  12. Eliana Garces & Duncan Thomas & Janet Currie, 2000. "Longer Term Effects of Head Start," NBER Working Papers 8054, National Bureau of Economic Research, Inc.
  13. Knudsen, Eric I. & Heckman, James J. & Cameron, Judy L. & Shonkoff, Jack P., 2006. "Economic, Neurobiological and Behavioral Perspectives on Building America's Future Workforce," IZA Discussion Papers 2190, Institute for the Study of Labor (IZA).
  14. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
  15. Bruce A. Weinberg, 2001. "An Incentive Model of the Effect of Parental Income on Children," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 109(2), pages 266-280, April.
  16. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," NBER Working Papers 9055, National Bureau of Economic Research, Inc.
  17. Flavio Cunha & James J. Heckman, 2010. "Investing in Our Young People," NBER Working Papers 16201, National Bureau of Economic Research, Inc.
  18. Thomas, D. & Currie, J., 1993. "Does Head Start Make a Difference?," Papers, Yale - Economic Growth Center 694, Yale - Economic Growth Center.
  19. Gordon B. Dahl & Lance Lochner, 2005. "The Impact of Family Income on Child Achievement," NBER Working Papers 11279, National Bureau of Economic Research, Inc.
  20. Elizabeth Caucutt & Lance Lochner, 2004. "Early and Late Human Capital Investments, Credit Constraints, and the Family," 2004 Meeting Papers 129, Society for Economic Dynamics.
  21. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 106(2), pages 262-333, April.
  22. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  23. Heckman, James J, 1995. "Lessons from the Bell Curve," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 103(5), pages 1091-1120, October.
  24. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
  25. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
  26. Blau, David & Currie, Janet, 2006. "Pre-School, Day Care, and After-School Care: Who's Minding the Kids?," Handbook of the Economics of Education, Elsevier, Elsevier.
  27. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," NBER Working Papers 12006, National Bureau of Economic Research, Inc.
  28. Bhargava, Alok, 2012. "Food, Economics, and Health," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199663910, October.
  29. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 75, pages 352.
  30. Richard J. Murnane & John B. Willett & Frank Levy, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," NBER Working Papers 5076, National Bureau of Economic Research, Inc.
  31. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 109(3), pages 455-499, June.
  32. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  33. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, October.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Baby P: some questions
    by chris dillow in Stumbling and Mumbling on 2008-11-14 15:06:17
  2. Human capital policies and inequality in recessions’ times
    by laurence-df in OFCE le blog on 2012-12-20 10:52:08
  3. Does school spending matter? Early years investment may offer higher returns – but the returns erode unless topped up during later phases of childhood
    by Blog Admin in British Politics and Policy at LSE on 2014-01-22 07:00:18
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