Estimating the Technology of Cognitive and Noncognitive Skill Formation

First Stage

Second Stage

Parameters

Parameters

Current Period Cognitive Skills (Self-Productivity)

^γ1,C,1

0.403

^γ2,c,1

0.657

(0.058)

(0.013)

Current Period Noncognitive Skills (Cross-Productivity)

^γ1,C,2

0.218

^γ2,c,2

0.009

(0.105)

(0.005)

Current Period Investments

^γ1,C,3

0.067

^γ2,c,3

0.167

(0.090)

(0.018)

Parental Cognitive Skills

^γ1,C,4

0.268

^γ2,c,4

0.047

(0.078)

(0.009)

Parental Noncognitive Skills

^γ1,C,5

0.044

^γ2,c,5

0.119

(0.050)

(0.150)

Complementarity Parameter

φ1,C

0.375

φ2,c

-0.827

(0.294)

(0.093)

Implied Elasticity of Substitution

1∕(1-Φi,c)

1.601

I∕(l-Φ2,c)

0.547

Variance of Shocks η_C,t

δ²1,C

0.941

δ²2,c

0.358

(0.048)

(0.006)

First Stage

Second Stage

Parameters

Parameters

current Period cognitive Skills (cross-Productivity)

^γ1,N,1

0.193

^γ2,N,1

0.058

(0.095)

(0.014)

current Period Noncognitive Skills (Self-Productivity)

^γ1,N,2

0.594

^γ2,N,2

0.638

(0.090)

(0.020)

current Period Investments

^γ1,N,3

0.099

^γ2,N,3

0.239

(0.296)

(0.031)

Parental cognitive Skills

^γ1,N,4

0.114

^γ2,N,4

0.065

(0.055)

(0.015)

Parental Noncognitive Skills

^γ1,N,5

0.000

^γ2,N,5

0.000

(0.821)

(0.203)

complementarity Parameter

φ1,N

-0.723

φ2,N

-0.716

(0.441)

(0.127)

Implied Elasticity of Substitution

1∕(1-Φi,n)

0.580

1∕(1-Φ2,n)

0.583

Variance of Shocks η_N,t

δ²1,N

0.767

δ²2,N

0.597

(0.076)

(0.017)