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dc.contributor.authorCunha, Flavioen_US
dc.contributor.authorHeckman, James Josephen_US
dc.contributor.authorLochner, Lance J.en_US
dc.contributor.authorMasterov, Dimitriy V.en_US
dc.date.accessioned2005-10-14en_US
dc.date.accessioned2010-07-07T09:11:08Z-
dc.date.available2010-07-07T09:11:08Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/33362-
dc.description.abstractThis paper presents economic models of child development that capture the essence of recent findings from the empirical literature on skill formation. The goal of this essay is to provide a theoretical framework for interpreting the evidence from a vast empirical literature, for guiding the next generation of empirical studies, and for formulating policy. Central to our analysis is the concept that childhood has more than one stage. We formalize the concepts of self-productivity and complementarity of human capital investments and use them to explain the evidence on skill formation. Together, they explain why skill begets skill through a multiplier process. Skill formation is a life cycle process. It starts in the womb and goes on throughout life. Families play a role in this process that is far more important than the role of schools. There are multiple skills and multiple abilities that are important for adult success. Abilities are both inherited and created, and the traditional debate about nature versus nurture is scientifically obsolete. Human capital investment exhibits both self-productivity and complementarity. Skill attainment at one stage of the life cycle raises skill attainment at later stages of the life cycle (self-productivity). Early investment facilitates the productivity of later investment (complementarity). Early investments are not productive if they are not followed up by later investments (another aspect of complementarity). This complementarity explains why there is no equity-efficiency trade-off for early investment. The returns to investing early in the life cycle are high. Remediation of inadequate early investments is difficult and very costly as a consequence of both self-productivity and complementarity.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 1675en_US
dc.subject.jelJ31en_US
dc.subject.jelI21en_US
dc.subject.jelI22en_US
dc.subject.jelI28en_US
dc.subject.ddc330en_US
dc.subject.keywordskill formationen_US
dc.subject.keywordeducationen_US
dc.subject.keywordgovernment policyen_US
dc.subject.keywordeducational financeen_US
dc.subject.stwBildungsverhaltenen_US
dc.subject.stwQualifikationen_US
dc.subject.stwBildungsinvestitionen_US
dc.subject.stwLebenslanges Lernenen_US
dc.titleInterpreting the evidence on life cycle skill formationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn501150811en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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