This paper examines the effects of skill advantages at age six on different types of parental investments, and long-run outcomes up to age 27. We exploit exogenous variation in skills due to school entry rules, combining 20 years of Chilean administrative records with a regression discontinuity design. Our results show higher in-school performance and college entrance scores, and sizable effects on college attendance and enrollment at selective institutions, particularly for low-income children. We find that parental time investments are neutral to early skills gaps, while monetary investments are reinforcing and likely to be mediating the long-run effects.
First version, March 13, 2020
I21: Analysis of Education
I26: Returns to Education
I28: Education: Government Policy
J24: Human Capital; Skills; Occupational Choice; Labor Productivity
J31: Wage Level and Structure; Wage Differentials