Working Paper: NBER ID: w16201
Authors: Flavio Cunha; James J. Heckman
Abstract: This paper reviews the recent literature on the production of skills of young persons. The literature features the multiplicity of skills that explain success in a variety of life outcomes. Noncognitive skills play a fundamental role in successful lives. The dynamics of skill formation reveal the interplay of cognitive and noncognitive skills, and the presence of critical and sensitive periods in the life-cycle. We discuss the optimal timing of investment over the life-cycle.
Keywords: skill formation; cognitive skills; noncognitive skills; technology of skill formation; investment in children
JEL Codes: J13; J24; D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| early childhood investments (J13) | later outcomes (I12) |
| ability gaps open up at early ages (I24) | early intervention can improve adult outcomes (I24) |
| credit constraints on a child's outcomes (J13) | depend on the age at which they bind (J13) |
| early constraints (C24) | significant long-term impacts on ability and schooling outcomes (I24) |
| socioemotional noncognitive skills (D91) | foster cognitive skills (I25) |
| timing of investments (G11) | crucial for effectiveness (C90) |
| investments in early childhood (I21) | more productive than those made later (N63) |