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Early Skill Effects on Types of Parental Investments and Long-Run Outcomes

Author

Listed:
  • Sebastian Gallegos

    (Inter-American Development Bank)

  • Pablo Celhay

Abstract

This paper examines the effects of skill advantages at age six on different types of parental investments, and long-run outcomes up to age 27. We exploit exogenous variation in skills due to school entry rules, combining 20 years of Chilean administrative records with a regression discontinuity design. Our results show higher in-school performance and college entrance scores, and sizable effects on college attendance and enrollment at selective institutions, particularly for low-income children. We find that parental time investments are neutral to early skills gaps, while monetary investments are reinforcing and likely to be mediating the long-run effects.

Suggested Citation

  • Sebastian Gallegos & Pablo Celhay, 2020. "Early Skill Effects on Types of Parental Investments and Long-Run Outcomes," Working Papers 2020-014, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2020-014
    Note: MIP
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    early life shocks; long-run outcomes; skills; parental investments; college attendance; test scores; low income; developing countries;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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