The Role of Schools in the Production of Achievement

45 Pages Posted: 27 Oct 2010

See all articles by Maria E. Canon

Maria E. Canon

Federal Reserve Banks - Federal Reserve Bank of St. Louis

Date Written: October 26, 2010

Abstract

What explains differences in pre-market factors? Three types of inputs are believed to determine the skills agents take to the labor market: ability, family inputs and school inputs. Therefore to answer the previous question it is crucial to understand first the importance of each of those inputs. The literature on the production of achievement has not been able to provide an estimation that can take the three factors into account simultaneously at the student level. This paper intends to fill this gap by providing an estimation of the production function of achievement where both types of investments (families and schools) are considered in a framework where the inputs are allowed to be correlated with the unobserved term, ability to learn. I do that by applying Olley and Pakes’ (1996) algorithm which accommodates for endogeneity problems in the choice of inputs for the production of achievement and by using parents’ saving for their child’s postsecondary education to control for the unobserved component (i.e. ability to learn) in the production of skills. The estimates for the role of family inputs are in line to previous findings. Additionally, the estimates of school inputs show that they are also important for the formation of students’ skills even after controlling for ability to learn.

Keywords: Cognitive Achievement, Literacy

JEL Classification: I21, J15

Suggested Citation

Canon, Maria E., The Role of Schools in the Production of Achievement (October 26, 2010). Available at SSRN: https://ssrn.com/abstract=1698265 or http://dx.doi.org/10.2139/ssrn.1698265

Maria E. Canon (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
22
Abstract Views
403
PlumX Metrics