n.a.
This 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.
The impact of participation in Head Start is investigated using a national sample of children. Comparisons are drawn between siblings to control for selection. Head Start is associated with large and significant gains in test scores among both whites and African-Americans. However, among African-Americans, these gains are quickly lost. Head Start significantly reduces the probability that a white child will repeat a grade but it has no effect on grade repetition among African-American children. Both whites and African-Americans who attend Head Start, or other preschools, gain greater access to preventive health services.
This paper considers the effect of how children pass time before entrance to school on attainment in primary school. We find in NCDS data that children perform marginally better at seven and eleven if they spent time with their mother, or at a pre-school, rather than in informal care. This holds when one controls for parental education, social class, and assessed parental interest in the child's education, as well as the quality of the peer group. In the BCS, however, time spent in nurseries effected no improvement in maths at ten as compared to time in informal care and pre-school children were performing much worse in reading. This worse performance was traceable to reduced vocabulary at five. Pre-school children were more advanced in copying at five relative to children in informal care but, while copying is a good predictor of scores in both maths and reading at ten, this advancement had been offset by then.
Specially collected data on adults in the Panel Study of Income Dynamics are used to provide evidence on the longer-term effects of Head Start, an early intervention program for poor preschool-age children. Whites who attended Head Start are, relative to their siblings who did not, significantly more likely to complete high school, attend college, and possibly have higher earnings in their early twenties. African-Americans who participated in Head Start are less likely to have been booked or charged with a crime. There is some evidence of positive spillovers from older Head Start children to their younger siblings.
We evaluate the effects of undergoing any early education (before the compulsory starting age of 5) and of pre-school on a cohort of British children born in 1958. In contrast to most available studies, we are able to assess whether any effects on cognition and socialisation are long-lasting, as well as to estimate their net impact on subsequent educational attainment and labour market performance. Controlling for a particularly rich set of child, parental, family and neighbourhood characteristics, we find some positive and long-lasting effects from early education. Specifically, pre-compulsory education (preschool or school entry prior to age 5) was found to yield large improvements in cognitive tests at age 7, which, though diminished in size, remained significant throughout the schooling years, up to age 16. By contrast, attendance of pre-school (nursery or playgroup) was found to yield a positive but short-lived impact on test scores. The effects on socialisation appear to be more mixed: we found some positive, though short-lasting, effects of pre-compulsory education on teachers' reports of social adjustment (only at age 7); on the other hand, we found some adverse behavioural effects according to parental reports at age 7 which persisted up to age 11. In adulthood, pre-compulsory education was found to increase the probabilities of obtaining qualifications and of being employed at age 33. For both pre-compulsory education and pre-school per se, we found evidence of a marginally significant 3-4 per cent wage gain at age 33.
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