Working Paper: NBER ID: w31706
Authors: Francisco Gallego; Philip Oreopoulos; Noah Spencer
Abstract: This paper discusses the importance of incorporating personal assistance into interventions aimed at improving long-term education and labor market success. While existing research demonstrates the cost-effectiveness of low-touch behavioral nudges, this paper argues that the dynamic nature of human capital accumulation requires sustained habits over time. To foster better habits, social connections are critical for encouraging enduring effort and intrinsic motivation. The paper showcases examples from various stages of human capital accumulation, including early childhood, adolescence, and adulthood, in which interventions that incorporate personal assistance substantially out-perform less intensive nudges. We underscore the importance of interactive support, guidance, and motivation in facilitating significant progress and explore the challenges associated with implementing cost-effective policies to provide such assistance.
Keywords: education; human capital; personal assistance; nudges
JEL Codes: D91; I20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Personal assistance (L84) | Long-term educational success (I21) |
| Personal assistance (L84) | Long-term labor market success (J29) |
| Personal assistance (L84) | Academic performance (D29) |
| Personal assistance (L84) | Educational attainment (I21) |
| Personal assistance (L84) | Adult earnings (J31) |
| Personal assistance (L84) | Motivation (M54) |
| Personal assistance (L84) | Social connections (Z13) |
| Personal assistance (L84) | Long-term habits (D15) |
| Low-touch nudges (D91) | Long-term educational success (I21) |
| Low-touch nudges (D91) | Long-term labor market success (J29) |
| Low-touch nudges (D91) | Academic performance (D29) |
| Low-touch nudges (D91) | Educational attainment (I21) |
| Low-touch nudges (D91) | Adult earnings (J31) |