Working Paper: NBER ID: w7288
Authors: james j heckman
Abstract: This paper considers the sources of skill formation in a modern economy and emphasizes the importance of both cognitive and noncognitive skills in producing economic and social success and the importance of both formal academic institutions and families and firms as sources of learning. Skill formation is a dynamic process with strong synergistic components. Skill begets skill. Early investment promotes later investment. Noncognitive skills and motivation are important determinants of success and these can be improved more successfully and at later ages than basic cognitive skills. Methods currently used to evaluate educational interventions ignore these noncogntive skills and therefore substantially understate the benefits of early intervention programs and mentoring and teenage motivation programs. At current levels of investment, American society underinvests in the very young and overinvests in mature adults with low skills.
Keywords: No keywords provided
JEL Codes: D33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| early investments in skill formation (J24) | later investments (G11) |
| early success (L26) | later success (Y50) |
| early failure (G33) | later failure (Y50) |
| noncognitive skills and motivation (D29) | success (Y60) |
| current educational policies (I28) | neglect of social skills and self-discipline (Z13) |
| policies aimed at improving family environments (J12) | effectiveness compared to direct educational investments (I26) |
| costs associated with remediating deficits in skill formation (J24) | increase with age (J14) |