Estimating the Technology of Cognitive and Noncognitive Skill Formation

First Stage

Second Stage

Parameters

Parameters

Current Period Cognitive Skills (Self-Productivity)

^γ1,C,1

0.479

^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 η_C,t

δ²1,C

0.176

δ²2,C

0.087

(0.007)

(0.003)

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 η_N,t

δ²l,N

0.222

δ²2,N

0.101

(0.013)

(0.004)