EARLY CHILDHOOD HUMAN CAPITAL INVESTMENT IN CHILDREN

Authors : Mehmet Ali Soytaş

Pages : 319-339

Doi:10.14780/iibd.32153

View : 24 | Download : 105

Publication Date : 2016-06-01

Article Type : Research Paper

Abstract :Early childhood investment is extremely important in forming the human capital. In order to understand the investment during this period, a human capital production function which takes parental skills, and investments as inputs and produce outcomes for children is needed. A well-known problem with the estimation of such production functions is the simultaneity of the inputs insert ignore into journalissuearticles values(time spent with children and income);. Therefore the education production function suffers from a similar problem. However, because the output of the intergenerational education production insert ignore into journalissuearticles values(i.e., completed education level); is determined across generations while the inputs, such as parental time investment, are determined over the life-cycle of each generation, one can treat these inputs as predetermined and use instruments from within the system to estimate the production function. This procedure in a systems of equations framework can be estimated by a three stage least squares insert ignore into journalissuearticles values(3SLS); estimator. Using data on two generations from the Panel Study of Income Dynamics insert ignore into journalissuearticles values(PSID);, this paper estimates the effect of parental characteristics and human capital investments on their children’s education outcomes in a 3SLS framework.
Keywords : Zaman yatırımı, Tahmin, 3SLS, PSID, Beşeri Sermaye