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Long-term Effects of Preschool on School Performance, Earnings and Social Mobility

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  • Lakshmi Raut

Abstract

Children from disadvantaged families perform very poorly in school and labour market because they acquire low level of social, motivational and cognitive skills during their early childhood development. Using the NLSY data set, this paper formulates and then estimates the production processes for cognitive skills and non-cognitive skills such as social and motivational skills during early childhood development and the long-term effects of these skills on learning and lifetime earnings of an individual. Using these estimated relationships, the paper provides a calibrated intergenerational altruistic model of parental investment in children's preschool. This dynamic model is then used to estimate the effects of publicly provided preschool to the children of poor socioeconomic status (SES) as a social contract on lifetime earnings distribution, intergenerational college and social mobility, and to estimate the tax burden of such a social contract. JEL Classifications: J24, J62, O15, I21

Suggested Citation

  • Lakshmi Raut, 2018. "Long-term Effects of Preschool on School Performance, Earnings and Social Mobility," Studies in Microeconomics, , vol. 6(1-2), pages 24-49, June.
    • Handle: RePEc:sae:miceco:v:6:y:2018:i:1-2:p:24-49
    DOI: 10.1177/2321022218802023
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    References listed on IDEAS

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    More about this item

    Keywords

    Preschool investment; Early childhood development; augmented earnings function; social mobility; college mobility;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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