Early Skill Gap Effects on Long-Run Outcomes and Parental Investments

Pablo Celhay and Sebastian Gallegos

No 10111, IDB Publications (Working Papers) from Inter-American Development Bank

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 more selective institutions, in particular for low-income children. Our findings suggest 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; Teachers; College Attendance; Test Scores; Low-income; Developing Country (search for similar items in EconPapers)
JEL-codes: I21 I28 J24 (search for similar items in EconPapers)
Date: 2020-01
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:10111

DOI: 10.18235/0002161

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