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Early Skill Gap Effects on Long-Run Outcomes and Parental Investments

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  • Celhay, Pablo
  • Gallegos, Sebastián

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 more selective institutions, in particular for low-income children. Our findings suggest 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

  • Celhay, Pablo & Gallegos, Sebastián, 2020. "Early Skill Gap Effects on Long-Run Outcomes and Parental Investments," IDB Publications (Working Papers) 10111, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:10111
    DOI: http://dx.doi.org/10.18235/0002161
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    More about this item

    Keywords

    Early Life Shocks; Long-run Outcomes; Skills; Parental Investments; Teachers; College Attendance; Test Scores; Low-income; Developing Country;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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