Skill Formation under Incomplete Information

We consider an economic model of child development with multiple stages. Due to incomplete information, parents are not able to tailor their investments to their child’s type when the child is young. We show that incomplete information weakens the importance of early investments in children when inter-stage investments are easily substitutable, but strengthens them when substitution is difficult. The latter case is empirically relevant.

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Year of publication:	2010-06
Authors:	Weinscheink, Philipp
Institutions:	Max-Planck-Institut zur Erforschung von Gemeinschaftsgütern, Max-Planck-Gesellschaft
Subject:	Education \| Skill Formation \| Incomplete Information

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Extent:	application/pdf
Series:	Working Paper Series of the Max Planck Institute for Research on Collective Goods.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2010_26
Classification:	D80 - Information and Uncertainty. General ; I21 - Analysis of Education ; J13 - Fertility; Family Planning; Child Care; Children; Youth
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008614913