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Measuring the Growth of Skills

Author

Listed:
  • James Heckman
  • Haihan Tian
  • Zijian Zhang
  • Jin Zhou

Abstract

This paper discusses a fundamental problem in measuring the growth of knowledge and comparing the skills of people. New skills emerge that are not just more of the previously acquired skills. Psychometric convention forces these skills into arbitrarily constructed scales, which can severely distort measurement. To formally address this problem, we measure skills using a novel measurement scheme, estimate a stochastic learning process, and reject the common scale assumption across levels for language and cognitive skills. Furthermore, we estimate dynamic complementarity without imposing arbitrary scales for skills.

Suggested Citation

  • James Heckman & Haihan Tian & Zijian Zhang & Jin Zhou, 2026. "Measuring the Growth of Skills," AEA Papers and Proceedings, American Economic Association, vol. 116, pages 278-283, May.
    • Handle: RePEc:aea:apandp:v:116:y:2026:p:278-283
    DOI: 10.1257/pandp.20261112
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    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20261112
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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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