Table 4
The Technology for Cognitive and Noncognitive Skill Formation
Linear Anchoring on Educational Attainment (Years of Schooling)
Allowing for Unobserved Heterogeneity (π), Factors Normally Distributed
Panel A: Technology of Cognitive Skill Formation (Next Period Cognitive Skills)
First Stage |
Second Stage | |||
Parameters |
Parameters | |||
Current Period Cognitive Skills (Self-Productivity) |
γ1,C,1 |
0.479 |
γ2,C,1 |
0.831 |
(0.026) |
(0.011) | |||
Current Period Noncognitive Skills (Cross-Productivity) |
γ1,C,2 |
0.070 |
γ2,C,2 |
0.001 |
(0.024) |
(0.005) | |||
Current Period Investments |
γ1,C,3 |
0.161 |
γ2,C,3 |
0.044 |
(0.015) |
(0.006) | |||
Parental Cognitive Skills |
γ1,C,4 |
0.031 |
γ2,C,4 |
0.073 |
(0.013) |
(0.008) | |||
Parental Noncognitive Skills |
γ1,C,5 |
0.258 |
γ2,C,5 |
0.051 |
(0.029) |
(0.014) | |||
Complementarity Parameter |
φ1,C |
0.313 |
φ2,C |
-1.243 |
(0.134) |
(0.125) | |||
Implied Elasticity of Substitution |
I∕(1-Φι,c) |
1.457 |
I∕(l-Φ2,c) |
0.446 |
Variance of Shocks ηC,t |
δ21,C |
0.176 |
δ22,C |
0.087 |
(0.007) |
(0.003) |
Panel B: Technology of Noncognitive Skill Formation (Next Period Noncognitive Skills)
First Stage |
Second Stage | |||
Parameters |
Parameters | |||
current Period cognitive Skills (cross-Productivity) |
γ1,N,1 |
0.000 |
γ2,N,1 |
0.000 |
(0.026) |
(0.010) | |||
current Period Noncognitive Skills (Self-Productivity) |
γ1,N,2 |
0.585 |
γ2,N,2 |
0.816 |
(0.032) |
(0.013) | |||
current Period Investments |
γ1,N,3 |
0.065 |
γ2,N,3 |
0.051 |
(0.021) |
(0.006) | |||
Parental cognitive Skills |
γ1,N,4 |
0.017 |
γ2,N,4 |
0.000 |
(0.013) |
(0.008) | |||
Parental Noncognitive Skills |
γ1,N,5 |
0.333 |
γ2,N,5 |
0.133 |
(0.034) |
(0.017) | |||
complementarity Parameter |
φ1,N |
-0.610 |
φ2,N |
-0.551 |
(0.215) |
(0.169) | |||
Implied Elasticity of Substitution |
1∕(1-Φi,n) |
0.621 |
1∕(1-Φ2,n) |
0.645 |
Variance of Shocks ηN,t |
δ2l,N |
0.222 |
δ22,N |
0.101 |
(0.013) |
(0.004) |
Note: Standard errors in parenthesis