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

Author

Listed:
  • Pablo Celhay
  • Sebastian Gallegos

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.

Suggested Citation

  • Pablo Celhay & Sebastian Gallegos, 2025. "Early Skill Effects on Parental Beliefs, Investments, and Children’s Long-Run Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 60(2), pages 371-399.
    • Handle: RePEc:uwp:jhriss:v:60:y:2025:i:2:p:371-399
    Note: DOI: https://doi.org/10.3368/jhr.0920-11175R2
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    File URL: http://jhr.uwpress.org/cgi/reprint/60/2/371
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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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