Early Skill Effects on Parental Beliefs, Investments, and Children’s Long-Run Outcomes

Pablo Celhay and Sebastian Gallegos

Journal of Human Resources, 2025, vol. 60, issue 2, 371-399

Abstract: This work examines the effects of early skill advantages on parental beliefs, investments, and children’s long-run outcomes measured up to age 27. We exploit exogenous variation in skills due to school entry rules, combining 20 years of Chilean administrative records with a regression discontinuity design. Our results show that these rules shift parental beliefs and increase their material investments. Children benefited from the early skill advantage have higher in-school performance and college entrance scores and sizable effects on college attendance and enrollment at selective institutions. These long-run effects are more pronounced for low-income families and likely mediated by parental beliefs and material investments.

JEL-codes: I21 I26 I28 J24 J31 (search for similar items in EconPapers)
Date: 2025
Note: DOI: https://doi.org/10.3368/jhr.0920-11175R2
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:60:y:2025:i:2:p:371-399

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