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Intergenerational Long Term Effects of Preschool - Structural Estimates from a Discrete Dynamic Programming Model

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  • Heckman, James
  • Raut, Lakshmi
Abstract
Using the NLSY79 and the NLSY79 Children and Young Adults datasets, this paper formulates, provides conditions for parametric and non-parametric identification and empirically estimates the parameters of an altruistic model of parental preschool investment within a structural dynamic programming framework. It then examines the effect of a publicly provided preschool policy to disadvantaged children on their educational and labor market achievements, and also on the inter-generational long-term effects on social mobility, college mobility, and earnings inequality. The paper calculates the tax burden of such a social contract policy, taking into account these intra- and inter-generational effects.

Suggested Citation

  • Heckman, James & Raut, Lakshmi, 2002. "Intergenerational Long Term Effects of Preschool - Structural Estimates from a Discrete Dynamic Programming Model," MPRA Paper 20657, University Library of Munich, Germany, revised 23 Dec 2009.
    • Handle: RePEc:pra:mprapa:20657
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    1. Intergenerational Long Term Effects of Preschool – Structural Estimates from a Discrete Dynamic Programming Model
      by maximorossi in NEP-LTV blog on 2013-06-12 01:46:30

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    18. Trofimov, Ivan D. & Baawi, Nurulhana A., 2020. "Human Capital: State of the Field and Ways to Extend the Concept," MPRA Paper 107039, University Library of Munich, Germany.
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    More about this item

    Keywords

    Preschool Investment; Early Childhood Development; Intergenerational Social Mobility; Structural Dynamic Programming;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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