Human Capital Development: New Evidence on the Production of Socio-Emotional Skills

This paper estimates a dynamic model of multidimensional human capital development from childhood into early adulthood

Abstract

We estimate a dynamic model of multidimensional human capital development from childhood through adolescence and into early adulthood for a Peruvian cohort born in 1994. We exploit multiple measures of cognitive and socio-emotional skills and a latent factor structure to estimate flexible skills production functions between the ages of 8 and 22. We focus particularly on socio-emotional skill development, and provide the first estimates of such skill production over such a long period in a developing country context. In the last period, when individuals reach adulthood at age 22, we show that socio-emotional skills can be separated into two distinct domains - social skills and task effectiveness skills- which develop differently especially with regard to time use and cross-productivity with cognition. We find that individuals with higher task effectiveness are less likely to have engaged in risky behaviours such as smoking, taking drugs, and engaging with gangs.

This work is part of the Young Lives at Work programme

Citation

Mitchell, Mark & Favara, Marta and Porter, Catherine & Sanchez, Alan, 2020. “Human Capital Development: New Evidence on the Production of Socio-Emotional Skills,” IZA Discussion Papers 13804, Institute of Labor Economics (IZA).

Human Capital Development: New Evidence on the Production of Socio-Emotional Skills

Published 1 October 2020