Estimating the Technology of Cognitive and Noncognitive Skill Formation

First Stage

Second Stage

Parameters

Parameters

Current Period Cognitive Skills (Self-Productivity)

^γ1,C,1

0.485

^γ2,C,1

0.884

(0.031)

(0.013)

Current Period Noncognitive Skills (Cross-Productivity)

^γ1,C,2

0.062

^γ2,C,2

0.011

(0.026)

(0.005)

Current Period Investments

^γ1,C,3

0.261

^γ2,C,3

0.044

(0.026)

(0.011)

Parental Cognitive Skills

^γ1,C,4

0.035

^γ2,C,4

0.051

(0.015)

(0.008)

Parental Noncognitive Skills

^γ1,C,5

0.157

^γ2,C,5

0.011

(0.033)

(0.012)

Complementarity Parameter

φ1,C

0.585

φ2,C

-1.220

(0.225)

(0.149)

Implied Elasticity of Substitution

I∕(1-Φι,c)

2.410

I∕(l-Φ2,c)

0.450

Variance of Shocks η_C,t

δ²1,C

0.165

δ²2,C

0.098

(0.007)

(0.003)

First Stage

Second Stage

Parameters

Parameters

current Period cognitive Skills (cross-Productivity)

^γ1,N,1

0.000

^γ2,N,1

0.002

(0.028)

(0.011)

current Period Noncognitive Skills (Self-Productivity)

^γ1,N,2

0.602

^γ2,N,2

0.857

(0.034)

(0.011)

current Period Investments

^γ1,N,3

0.209

^γ2,N,3

0.104

(0.031)

(0.022)

Parental cognitive Skills

^γ1,N,4

0.014

^γ2,N,4

0.000

(0.013)

(0.008)

Parental Noncognitive Skills

^γ1,N,5

0.175

^γ2,N,5

0.037

(0.033)

(0.021)

complementarity Parameter

φ1,N

-0.464

φ2,N

-0.522

(0.263)

(0.214)

Implied Elasticity of Substitution

1∕(1-Φi,n)

0.683

1∕(1-Φ2,n)

0.657

Variance of Shocks η_N,t

δ²l,N

0.203

δ²2,N

0.102

(0.012)

(0.003)