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Early Skill Effects on Types of Parental Investments and Long-Run Outcomes

Sebastian Gallegos () and Pablo Celhay

No 2020-014, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: This paper examines the effects of skill advantages at age six on different types of parental investments, and long-run outcomes 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 higher in-school performance and college entrance scores, and sizable effects on college attendance and enrollment at selective institutions, particularly for low-income children. We find that parental time investments are neutral to early skills gaps, while monetary investments are reinforcing and likely to be mediating the long-run effects.

Keywords: early life shocks; long-run outcomes; skills; parental investments; college attendance; test scores; low income; developing countries (search for similar items in EconPapers)
JEL-codes: I21 I26 I28 J24 J31 (search for similar items in EconPapers)
Date: 2020-03
New Economics Papers: this item is included in nep-dev and nep-edu
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