Estimating the Technology of Cognitive and Noncognitive Skill Formation

First Stage
Parameters

Second Stage
Parameters

Current Period Cognitive Skills (Self-Productivity)

^γ1,C,1

0.487

^γ2,C,1

0.902

(0.030)

(0.014)

Current Period Noncognitive Skills (Cross-Productivity)

^γ1,C,2

0.083

^γ2,C,2

0.011

(0.026)

(0.005)

Current Period Investments

^γ1,C,3

0.231

^γ2,C,3

0.020

(0.024)

(0.006)

Parental Cognitive Skills

^γ1,C,4

0.050

^γ2,C,4

0.047

(0.013)

(0.008)

Parental Noncognitive Skills

^γ1,C,5

0.148

^γ2,C,5

0.020

(0.030)

(0.010)

Complementarity Parameter

φ1,C

0.611

φ2,C

-1.373

(0.240)

(0.168)

Implied Elasticity of Substitution

I∕(1-Φι,c)

2.569

1∕(i-Φ2,c)

0.421

Variance of Shocks η_c,t

δ²1,C

0.165

δ²2,C

0.097

(0.007)

(0.003)

The Technology of Noncognitive Skill Formation

First Stage
Parameters

Second Stage
Parameters

Current Period Cognitive Skills (Cross-Productivity)

^γ1,N,1

0.000

^γ2,N,1

0.008

(0.025)

0.010

Current Period Noncognitive Skills (Self-Productivity)

^γ1,N,2

0.649

^γ2,N,2

0.868

(0.034)

0.011

Current Period Investments

^γ1,N,3

0.146

^γ2,N,3

0.055

(0.027)

0.013

Parental Cognitive Skills

^γ1,N,4

0.022

^γ2,N,4

0.000

(0.011)

0.007

Parental Noncognitive Skills

^γ1,N,5

0.183

^γ2,N,5

0.069

(0.031)

0.017

Complementarity Parameter

φ1,N

-0.674

φ2,N

-0.695

(0.324)

0.274

Implied Elasticity of Substitution

1∕(1-Φ1N

0.597

1∕(i-Φ2,N)

0.590

Variance of Shocks η_n,t

δ²1,N

0.189

δ²2,N

0.103

(0.012)

0.004