The Economic Value of Breaking Bad: Misbehavior, Schooling and the Labor Market
Prevailing research argues that childhood misbehavior in the classroom is bad for schooling and, presumably, bad for adult outcomes. In contrast, we argue that childhood misbehavior represents some underlying non-cognitive skills that are valuable in the labor market. We follow work from psychology and categorize observed classroom misbehavior into two underlying latent factors. We then estimate a model of educational attainment and earnings outcomes, allowing the impact of each of the two factors to vary by outcome. We find one of the factors, labeled in the psychological literature as externalizing behavior (and linked, for example, to aggression), reduces educational attainment yet increases earnings. Unlike most models where non-cognitive skills that increase human capital through education also increase labor market skills, our findings illustrate how some non-cognitive skills can be productive in some economic contexts and counter-productive in others. Policies designed to promote human capital accumulation could therefore have mixed effects or even negative economic consequences, especially for policies that target non-cognitive skill formation for children or adolescents which are aimed solely at improving educational outcomes.
|Date of creation:||Jun 2017|
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References listed on IDEAS
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- Sergio Urzúa, 2008. "Racial Labor Market Gaps: The Role of Abilities and Schooling Choices," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
- Scott E. Carrell & Mark L. Hoekstra, 2010.
"Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone's Kids,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 2(1), pages 211-228, January.
- Scott E. Carrell & Mark L. Hoekstra, 2008. "Externalities in the Classroom: How Children Exposed to Domestic Violence Affect Everyone's Kids," NBER Working Papers 14246, National Bureau of Economic Research, Inc.
- Pedro Carneiro & Katrine V. Løken & Kjell G. Salvanes, 2015. "A Flying Start? Maternity Leave Benefits and Long-Run Outcomes of Children," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 365-412.
- Carneiro, Pedro & Loken, Katrine Vellesen & Salvanes, Kjell G., 2011. "A Flying Start? Maternity Leave Benefits and Long Run Outcomes of Children," IZA Discussion Papers 5793, Institute for the Study of Labor (IZA).
- James Heckman & Tim Kautz, 2013. "Fostering and Measuring Skills: Interventions That Improve Character and Cognition," Working Papers 2013-019, Human Capital and Economic Opportunity Working Group.
- James J. Heckman & Tim Kautz, 2013. "Fostering and Measuring Skills: Interventions That Improve Character and Cognition," NBER Working Papers 19656, National Bureau of Economic Research, Inc.
- Heckman, James J. & Kautz, Tim, 2013. "Fostering and Measuring Skills: Interventions That Improve Character and Cognition," IZA Discussion Papers 7750, Institute for the Study of Labor (IZA).
- Sciulli, Dario, 2016. "Adult employment probabilities of socially maladjusted children," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 60(C), pages 9-22. Full references (including those not matched with items on IDEAS)
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