Figure 1: Ratio of early to late investment in human capital
as a function of the ratio of first period to second period investment productivity
for different values of the complementarity parameter
Ratio ofEarly to Late Investment
3.
2.
1.
0.
5
3
5
5
1
5
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Skill Multiplier (γ)
Note: Assumes r = 0.
Source: Cunha and Heckman (2007).
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