IDEAS home Printed from https://ideas.repec.org/p/mpg/wpaper/2010_26.html
   My bibliography  Save this paper

Skill Formation under Incomplete Information

Author

Listed:
  • Philipp Weinscheink

    (Max Planck Institute for Research on Collective Goods, Bonn)

Abstract

We consider an economic model of child development with multiple stages. Due to incomplete information, parents are not able to tailor their investments to their child’s type when the child is young. We show that incomplete information weakens the importance of early investments in children when inter-stage investments are easily substitutable, but strengthens them when substitution is difficult. The latter case is empirically relevant.

Suggested Citation

  • Philipp Weinscheink, 2010. "Skill Formation under Incomplete Information," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2010_26, Max Planck Institute for Research on Collective Goods.
    • Handle: RePEc:mpg:wpaper:2010_26
    as

    Download full text from publisher

    File URL: http://www.coll.mpg.de/pdf_dat/2010_26online.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    2. Daron Acemoglu, 2002. "Directed Technical Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 781-809.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marina Bassi & Matías Busso & Sergio Urzúa & Jaime Vargas, 2012. "Disconnected: Skills, Education, and Employment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 79504, February.
    2. Busso, Matías & Bassi, Marina & Urzúa, Sergio & Vargas, Jaime, 2012. "Disconnected: Skills, Education, and Employment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 427, December.
    3. Dongya Koh & Raül Santaeulàlia-Llopis, 2017. "Countercyclical Elasticity of Substitution," Working Papers 946, Barcelona School of Economics.
    4. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    5. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    6. Elizabeth M. Caucutt & Lance Lochner & Youngmin Park, 2017. "Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 102-147, January.
    7. Heckman, James J. & Loughlin, Colleen P., 2021. "Are Student-Athletes Exploited?," IZA Discussion Papers 14857, Institute of Labor Economics (IZA).
    8. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja & Tristan Zajonc, 2011. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 29-54, July.
    9. Johannes Abeler & Armin Falk & Fabian Kosse, 2021. "Malleability of Preferences for Honesty," CESifo Working Paper Series 9033, CESifo.
    10. Patrick Mellacher, 2021. "Growth, Inequality and Declining Business Dynamism in a Unified Schumpeter Mark I + II Model," Papers 2111.09407, arXiv.org, revised Nov 2023.
    11. Tullio Jappelli, 2010. "Economic Literacy: An International Comparison," Economic Journal, Royal Economic Society, vol. 120(548), pages 429-451, November.
    12. Nicholas Bloom & Tarek Alexander Hassan & Aakash Kalyani & Josh Lerner & Ahmed Tahoun, 2021. "The diffusion of disruptive technologies," CEP Discussion Papers dp1798, Centre for Economic Performance, LSE.
    13. Francesca Carta & Lucia Rizzica, 2015. "Female employment and pre-kindergarten: on the uninteded effects of an Italian reform," Temi di discussione (Economic working papers) 1030, Bank of Italy, Economic Research and International Relations Area.
    14. Marta Favara & Catherine Porter & Tassew Woldehanna, 2019. "Smarter through social protection? Evaluating the impact of Ethiopia’s safety-net on child cognitive abilities," Oxford Development Studies, Taylor & Francis Journals, vol. 47(1), pages 79-96, January.
    15. Fan, Fei & Dai, Shangze & Yang, Bo & Ke, Haiqian, 2023. "Urban density, directed technological change, and carbon intensity: An empirical study based on Chinese cities," Technology in Society, Elsevier, vol. 72(C).
    16. Ron Diris, 2017. "Don't Hold Back? The Effect of Grade Retention on Student Achievement," Education Finance and Policy, MIT Press, vol. 12(3), pages 312-341, Summer.
    17. Martin, Ralf, 2009. "Why is the US so energy intensive? Evidence from US multinationals in the UK," LSE Research Online Documents on Economics 28703, London School of Economics and Political Science, LSE Library.
    18. David Hémous & Morten Olsen, 2022. "The Rise of the Machines: Automation, Horizontal Innovation, and Income Inequality," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(1), pages 179-223, January.
    19. Iryna Hayduk & Maude Toussaint‐Comeau, 2022. "Determinants of noncognitive skills: Mediating effects of siblings' interaction and parenting quality," Contemporary Economic Policy, Western Economic Association International, vol. 40(4), pages 677-694, October.
    20. Battisti, Michele & Gatto, Massimo Del & Parmeter, Christopher F., 2022. "Skill-biased technical change and labor market inefficiency," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).

    More about this item

    Keywords

    Education; Skill Formation; Incomplete Information;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mpg:wpaper:2010_26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marc Martin (email available below). General contact details of provider: https://edirc.repec.org/data/mppggde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.