Investing in Our Young People

Cunha, Flavio; Heckman, James J.

Investing in Our Young People

IZA Discussion Paper No. 5050

33 Pages Posted: 12 Jul 2010

See all articles by Flavio Cunha

Flavio Cunha

University of Pennsylvania - Department of Economics

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

There are 2 versions of this paper

Abstract

This paper reviews the recent literature on the production of skills of young persons. The literature features the multiplicity of skills that explain success in a variety of life outcomes. Noncognitive skills play a fundamental role in successful lives. The dynamics of skill formation reveal the interplay of cognitive and noncognitive skills, and the presence of critical and sensitive periods in the life-cycle. We discuss the optimal timing of investment over the life-cycle.

Keywords: skill formation, cognitive skills, noncognitive skills, technology of skill formation, investment in children

JEL Classification: J13, J24, D91

Suggested Citation: Suggested Citation

Cunha, Flavio and Heckman, James J., Investing in Our Young People. IZA Discussion Paper No. 5050. Available at SSRN: https://ssrn.com/abstract=1638506