This paper studies the multidimensional nature of investments in children within a dynamic framework. In particular, we … dynamics of skill accumulation. Fourth, we use data from the Child Development Supplement of the Panel Study of Income Dynamics … to estimate the skill production technology for children ages 12 and younger. Our estimates suggest complementarity …

internal rates of return that take into account tuition costs, income taxes and nonlinearities in the earnings …

markets. These constraints imply cross-sectional patterns for schooling, ability, and family income that are consistent with U … -- schooling relationship for low-income youth. We show that the rising empirical importance of familial wealth and income in …

developing and persistent gaps in child achievement by family income and the importance of adolescent skill levels for … family income, we study four leading mechanisms thought to explain these gaps: an intergenerational correlation in ability, a … mechanisms influence family investments in children, we evaluate the extent to which these mechanisms also explain other …

fixed effect instrumental variables strategy to estimate the causal effect of income on children's math and reading … that is difficult to answer due to the potential endogeneity of family income. Past estimates of the effect of family … income on child development have often been plagued by omitted variable bias and measurement error. In this paper, we use a …