Estimating the Technology of Youth Cognitive and Noncognitive Skill Production
Saba Ranjbar
Estimating the Technology of Youth Cognitive and Noncognitive Skill Production
Saba Ranjbar
This paper estimates models of the evolution of cognitive and noncognitive skills and studies the role of family environment in shaping these skills in teenage years. I estimate a dynamic factor model to solve the issue of endogeneity of inputs and multiplicity of inputs relative to instruments. The model is estimated once for the 1988 sample between the ages of 14 to 16, and a second time, for high school graduates only, in both 1988 and 2009 cohorts between the ages of 14 and 18. This paper differs from others in the literature by looking at the evolution of skill production technology in teenagers and young adults over a span of 20 years instead of estimating the production function only for one cohort and in early childhood. The results show that parental investments (both in terms of time and money) improved noncognitive skills but not cognitive skills for the 1988 cohort. The effect on cognitive skills has increased in the later cohort.
KeywordsChild Development · Human Capital · Cognitive Skills · Noncognitive Skills · Parental Investments