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Research ArticleArticles

Early Skill Effects on Parental Beliefs, Investments and Children Long-Run Outcomes1

Pablo Celhay and Sebastian Gallegos
Published online before print July 11, 2022, 0920-11175R2; DOI: https://doi.org/10.3368/jhr.0920-11175R2
Pablo Celhay
aPablo Celhay is an assistant professor at the School of Government and Instituto de Economía, Pontificia Universidad Católica de Chile., Pontifιcia Universidad Católica de Chile.
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Sebastian Gallegos
bSebastian Gallegos (corresponding author) is an assistant professor of economics at the Business School, Universidad Adolfo Ibañez, Chile and member of the Human Capital and Economic Opportunity Global Working Group (HCEO) at The University of Chicago. Email: .
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Abstract

This paper 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 change parental beliefs and influence 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.

Keywords:
  • Early Life Shocks
  • Signals of Ability
  • Long-run Outcomes
  • Skills
  • Parental Investments
  • College Attendance
  • Test Scores
  • Low-income
  • Developing Countries
JEL codes
  • I21
  • I26
  • I28
  • J24
  • J31

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Journal of Human Resources: 58 (3)
Journal of Human Resources
Vol. 58, Issue 3
1 May 2023
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Early Skill Effects on Parental Beliefs, Investments and Children Long-Run Outcomes1
Pablo Celhay, Sebastian Gallegos
Journal of Human Resources Jul 2022, 0920-11175R2; DOI: 10.3368/jhr.0920-11175R2

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Early Skill Effects on Parental Beliefs, Investments and Children Long-Run Outcomes1
Pablo Celhay, Sebastian Gallegos
Journal of Human Resources Jul 2022, 0920-11175R2; DOI: 10.3368/jhr.0920-11175R2
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Keywords

  • Early Life Shocks
  • Signals of Ability
  • Long-run Outcomes
  • skills
  • Parental Investments
  • college attendance
  • test scores
  • Low-income
  • Developing Countries
  • I21
  • I26
  • I28
  • J24
  • J31
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