January 2007

IZA DP No. 2550: The Technology of Skill Formation

published in: American Economic Review, 2007, 97 (2), 31-47

This paper develops a model of skill formation that explains a variety of findings established in the child development and child intervention literatures. At its core is a technology that is stage-specific and that features self productivity, dynamic complementarity and skill multipliers. Lessons are drawn for the design of new policies to alleviate the consequences of the accident of birth that is a major source of human inequality.