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Measuring the Growth of Skills

Author

Listed:
  • James J. 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 J. Heckman & Haihan Tian & Zijian Zhang & Jin Zhou, 2026. "Measuring the Growth of Skills," NBER Working Papers 34737, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:34737
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    References listed on IDEAS

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    1. Joachim Freyberger, 2021. "Normalizations and misspecification in skill formation models," Papers 2104.00473, arXiv.org, revised Sep 2025.
    2. James J. Heckman & Jin Zhou, 2026. "A Study of the Microdynamics of Early-Childhood Learning," Journal of Political Economy, University of Chicago Press, vol. 134(1), pages 49-85.
    3. Jin Zhou & James Heckman & Bei Liu & Mai Lu, 2026. "The Impact of a Prototypical Home Visiting Program on Child Skills," Journal of Labor Economics, University of Chicago Press, vol. 44(1), pages 119-148.
    4. Brian Jacob & Jesse Rothstein, 2016. "The Measurement of Student Ability in Modern Assessment Systems," Journal of Economic Perspectives, American Economic Association, vol. 30(3), pages 85-108, Summer.
    5. Flavio Cunha & Eric Nielsen & Benjamin Williams, 2021. "The Econometrics of Early Childhood Human Capital and Investments," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 487-513, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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