Table 5.
Estimates of the Technology for Cognitive and Noncognitive Skill Formation Estimated Along with Investment Equation with 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 Parameters |
Second Stage Parameters |
|||
| Current Period Cognitive Skills (Self-Productivity) | γ 1,C,1 | 0.384 (0.022) |
γ 2,C,1 | 0.770 (0.018) |
| Current Period Noncognitive Skills (Cross-Productivity) | γ 1,C,2 | 0.071 (0.023) |
γ 2,C,2 | 0.009 (0.005) |
| Current Period Investments | γ 1,C,3 | 0.124 (0.015) |
γ 2,C,3 | 0.049 (0.011) |
| Parental Cognitive Skills | γ 1,C,4 | 0.054 (0.012) |
γ 2,C,4 | 0.072 (0.008) |
| Parental Noncognitive Skills | γ 1,C,5 | 0.368 (0.026) |
γ 2,C,5 | 0.099 (0.016) |
| Complementarity Parameter | ϕ 1,C | 0.480 (0.109) |
ϕ 2,C | −0.961 (0.115) |
| Implied Elasticity of Substitution | 1/(1–ϕ1,C) | 1.925 | 1/(1–2,C) | 0.510 |
| Variance of Shocks ηC,t | δ 2 1,C | 0.151 (0.006) |
δ 2 2,C | 0.090 (0.003) |
|
Panel B: Technology of Noncognitive Skill Formation (Next Period Noncognitive Skills) | ||||
| First Stage Parameters | Second Stage Parameters | |||
| Current Period Cognitive Skills (Cross-Productivity) | γ 1,N,1 | 0.000 (0.020) |
γ 2,N,1 | 0.000 (0.009) |
| Current Period Noncognitive Skills (Self-Productivity) | γ 1,N,2 | 0.526 (0.032) |
γ 2,N,2 | 0.748 (0.019) |
| Current Period Investments | γ 1,N,3 | 0.021 (0.010) |
γ 2,N,3 | 0.055 (0.015) |
| Parental Cognitive Skills | γ 1,N,4 | 0.057 (0.012) |
γ 2,N,4 | 0.000 (0.009) |
| Parental Noncognitive Skills | γ 1,N,5 | 0.396 (0.031) |
γ 2,N,5 | 0.196 (0.021) |
| Complementarity Parameter | ϕ 1,N | −0.818 (0.253) |
ϕ 2,N | −0.483 (0.157) |
| Implied Elasticity of Substitution | 1/(1–ϕ1,N) | 0.550 | 1/(1–ϕ2,N) | 0.674 |
| Variance of Shocks ηN,t | δ 2 1,N | 0.210 (0.012) |
δ 2 2,N | 0.101 (0.003) |
Note: Standard errors in parenthesis