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
Authors:	Weinschenk, Philipp
Publisher:	Bonn : Max Planck Institute for Research on Collective Goods
Subject:	Kinder \| Bildungsinvestition \| Unvollkommene Information \| Eltern \| Zeitökonomik \| Theorie \| Skill Formation \| Education \| Incomplete Information

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Series:	Preprints of the Max Planck Institute for Research on Collective Goods ; 2010,26
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	627602487 [GVK] hdl:10419/38860 [Handle]
Classification:	I21 - Analysis of Education ; J13 - Fertility; Family Planning; Child Care; Children; Youth ; D80 - Information and Uncertainty. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10010270436