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Research ArticleArticles

Early Skill Effects on Parental Beliefs, Investments, and Children’s Long-Run Outcomes

View ORCID ProfilePablo Celhay and View ORCID ProfileSebastian Gallegos
Journal of Human Resources, March 2025, 60 (2) 371-399; DOI: https://doi.org/10.3368/jhr.0920-11175R2
Pablo Celhay
Pablo Celhay is an associate professor at the School of Government and Instituto de Economía, Pontificia Universidad Católica de Chile, Chile.
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  • ORCID record for Pablo Celhay
Sebastian Gallegos
Sebastian Gallegos is an assistant professor of economics at the Business School, Universidad Adolfo Ibañez, Chile; IZA Research Fellow, and member of the Human Capital and Economic Opportunity Global Working Group (HCEO) at The University of Chicago (corresponding author, ).
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Abstract

This work examines the effects of early skill advantages on parental beliefs, investments, and children’s long-run outcomes measured up to age 27. We exploit exogenous variation in skills due to school entry rules, combining 20 years of Chilean administrative records with a regression discontinuity design. Our results show that these rules shift parental beliefs and increase their material investments. Children benefited from the early skill advantage have higher in-school performance and college entrance scores and sizable effects on college attendance and enrollment at selective institutions. These long-run effects are more pronounced for low-income families and likely mediated by parental beliefs and material investments.

JEL Classification:
  • I21
  • I26
  • I28
  • J24
  • J31
  • Received September 2020.
  • Accepted May 2022.
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Journal of Human Resources: 60 (2)
Journal of Human Resources
Vol. 60, Issue 2
1 Mar 2025
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Early Skill Effects on Parental Beliefs, Investments, and Children’s Long-Run Outcomes
Pablo Celhay, Sebastian Gallegos
Journal of Human Resources Mar 2025, 60 (2) 371-399; DOI: 10.3368/jhr.0920-11175R2

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Early Skill Effects on Parental Beliefs, Investments, and Children’s Long-Run Outcomes
Pablo Celhay, Sebastian Gallegos
Journal of Human Resources Mar 2025, 60 (2) 371-399; DOI: 10.3368/jhr.0920-11175R2
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Keywords

  • I21
  • I26
  • I28
  • J24
  • J31
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