Intergenerational Long Term Effects of Preschool: Structural Estimates from a Discrete Dynamic Programming Model
AbstractThis paper formulates a structural dynamic programming model of preschool investment choices of altruistic parents and then empirically estimates the structural parameters of the model using the NLSY79 data. The paper finds that preschool investment significantly boosts cognitive and non-cognitive skills, which enhance earnings and school outcomes. It also finds that a standard Mincer earnings function, by omitting measures of non-cognitive skills on the right hand side, overestimates the rate of return to schooling. From the estimated equilibrium Markov process, the paper studies the nature of within generation earnings distribution and intergenerational earnings and schooling mobility. The paper finds that a tax financed free preschool program for the children of poor socioeconomic status generates positive net gains to the society in terms of average earnings and higher intergenerational earnings and schooling mobility.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7415.
Length: 43 pages
Date of creation: May 2013
Date of revision:
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Other versions of this item:
- Heckman, James & Raut, Lakshmi, 2002. "Intergenerational Long Term Effects of Preschool - Structural Estimates from a Discrete Dynamic Programming Model," MPRA Paper 20657, University Library of Munich, Germany, revised 23 Dec 2009.
- James J. Heckman & Lakshmi K. Raut, 2013. "Intergenerational Long Term Effects of Preschool - Structural Estimates from a Discrete Dynamic Programming Model," NBER Working Papers 19077, National Bureau of Economic Research, Inc.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-09 (All new papers)
- NEP-DGE-2013-06-09 (Dynamic General Equilibrium)
- NEP-EDU-2013-06-09 (Education)
- NEP-URE-2013-06-09 (Urban & Real Estate Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Intergenerational Long Term Effects of Preschool Structural Estimates from a Discrete Dynamic Programming Model
by maximorossi in NEP-LTV blog on 2013-06-11 20:46:30
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