ESTIMATING A TECHNOLOGY OF COGNITIVE SKILL FORMATION IN BRAZIL
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It is been well established by numerous studies that cognitive achievement, measured by various tests, is related to future labor market outcomes. In light of these results, a large body of empirical research has focused on the determinants of cognitive achievement. This study contributes to this literature by identifying and estimating a technology of skill formation as a function of family and school investments. In the model, cognitive skills, family investments and school investments are latent variables measured by a series of proxies.As families may adjust their investment in home inputs...
It is been well established by numerous studies that
cognitive achievement, measured by various tests, is
related to future labor market outcomes. In light of
these results, a large body of empirical research
has focused on the determinants of cognitive
achievement. This study contributes to this
literature by identifying and estimating a
technology of skill formation as a function of
family and school investments. In the model,
cognitive skills, family investments and school
investments are latent variables measured by a
series of proxies.
As families may adjust their investment in home
inputs in reaction to some exogenous change in
school investments this study jointly estimates the
production function for cognitive achievement and
the parental reaction function to school investment.
Using this framework, the total effect of a change
in school investment on cognitive achievement is
indentified. As policy-makers want to implement
school reforms intended to enhance the cognitive
achievement of children, knowing whether school
investment will crowd out home investments or will
be complemented by them may facilitate more informed
policy decisions
cognitive achievement, measured by various tests, is
related to future labor market outcomes. In light of
these results, a large body of empirical research
has focused on the determinants of cognitive
achievement. This study contributes to this
literature by identifying and estimating a
technology of skill formation as a function of
family and school investments. In the model,
cognitive skills, family investments and school
investments are latent variables measured by a
series of proxies.
As families may adjust their investment in home
inputs in reaction to some exogenous change in
school investments this study jointly estimates the
production function for cognitive achievement and
the parental reaction function to school investment.
Using this framework, the total effect of a change
in school investment on cognitive achievement is
indentified. As policy-makers want to implement
school reforms intended to enhance the cognitive
achievement of children, knowing whether school
investment will crowd out home investments or will
be complemented by them may facilitate more informed
policy decisions
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