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  • LancasterWP2022_007

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Human Capital Development: New Evidence on the Production of Socio-emotional Skills

Research output: Working paper

Publication date10/2022
Place of PublicationLancaster
PublisherThe Department of Economics
<mark>Original language</mark>English

Publication series

NameEconomics Working Papers series


We estimate a dynamic model of socio-emotional skill development between ages 8-22 for a Peruvian cohort born in 1994. At age 8 there is no wealth gradient, in contrast to cognitive skills. However, by age 12 inequalities emerge and widen through age 19, driven by differential household investments, and cross-productivity with cognitive skills. In early adulthood, we separate socio-emotional skills into two distinct domains – social skills and task effectiveness - that evolve differently, and are differently correlated with risky behaviours such as smoking or taking drugs. Unequal initial household resources perpetuate inequality across generations through cognitive and task effectiveness skills.