This paper was given presented at the Aaron Wildavsky Forum, Richard and Rhoda Goldman School of Public Policy, University of California at Berkeley. The research reported here was supported by the National Science Foundation, the Russell Sage Foundation and the American Bar Foundation. Outline: Rising Wage Inequality - A Global Problem Linked To Trade and Technology Show Magnitudes of Problem 1.66 Trillion Cost To Restore U.S. to Previous Levels Tuition Subsidy Policy How to Combat This? Transfer Unpopular Skill enhancement is popular Another avenue is to subsidize work by the unskilled Think more broadly about tax/transfer policy Take the Long View Main Points of My Lecture Tonight About Skill Formation and Sources of Skill Formation in A Modern Economy Costly To Produce Skill Need to Recognize That Skill is Not Undimensional Recognize Diversity of Skill Motivation, IQ, Skill all matter but these are not the same thing. Need to Recognize the Life Cycle of Skill Production: Learning Begets Learning and Early Learning More Productive Than Later Learning: Not just because payoff is less for the late investor but also Because of synergies and Complementarity. Beyond A Certain Age and Stage in Life Cycle H.C. Investment Not Productive. Recognize Important Role of Families and Informal Sources of Skill "Social Planners" and professional educators equate skill with educational; what is produced in their institutions and what is measured by their tests; but in a broader definition of skill families play a much greater role (values; motivation) OJT is productive. Firms are highly productive sources of skill of Human Capital 25-50% of Human Capital Produce on the Job The Role of the Formal Overstated and Informal Context and Sources of Skills Understated. A Substantial Antimarket - Anti Choice Bias of Many Educational Planners Against Market and Competition - Yet The Evidence Strong Favors Competition in Provision of Education German Apprenticeship System // Data from U.S. Parental Preferences Peculiar World of High School and the Advantage of School to Work Programs Many Traditional Arguments Supporting Educational Interventions Greatly Overstated Evidence Against Short Term Liquidity Constraints Evidence that H.C. Should be Taxed More (At Least Within U.S. System) - Elimination of Progressive Taxes and Shift To A Consumption Tax and Making Tuition Deductible. Raises Physical Capital Accumulation and Raises Productivity and Wages Formal Schooling and Job Training both Private and Public Quality Effects Credit Constraints Wage Subsidies: Do They Work? Tax Policy Early Interventions and Donohue Siegelman Estimates Long View

Policies to Foster Human Capital

The majority of children in the US and many other high-income nations are now cared for many hours per week by people who are neither their parents nor their school teachers. The role of such pre-school and out-of-school care is potentially two-fold: First, child care makes it feasible for both parents or the only parent in a single-parent family to be employed. Second, early intervention programs and after school programs aim to enhance child development, particularly among disadvantaged children. Corresponding to this distinction, there are two branches of literature to be summarized in this chapter. The first focuses on the market for child care and analyzes factors affecting the supply, demand and quality of care. The second focuses on child outcomes, and asks whether certain types of programs can ameliorate the effects of early disadvantage. The primary goal of this review is to bring the two literatures together in order to suggest ways that both may be enhanced. Accordingly, we provide an overview of the number of children being cared for in different sorts of arrangements; describe theory and evidence about the nature of the private child care market; and discuss theory and evidence about government intervention in the market for child care. Our summary suggests that additional research is needed in order to better characterize interactions between government programs and market-provided child care.

/pdf/preschool-day-care-and-afterschool-care-who-s-minding-the-3a0sj3hjmn.pdf

Preschool, Day Care, and Afterschool Care: Who's Minding the Kids?

Chapter 20 Pre-School, Day Care, and After-School Care: Who's Minding the Kids?

Three states recently introduced universal prekindergarten programs offering free preschool to all age‐eligible children; policy makers in many other states are promoting similar programs. Using restricted‐access data from the Census, together with birthday‐based eligibility cutoffs, I employ a regression discontinuity framework to estimate the effects of universal pre‐K availability on overall preschool enrollment and maternal labor supply. Universal pre‐K availability increases statewide preschool enrollment by about 14% but has little effect on the labor supply of most women.

/pdf/preschoolers-enrolled-and-mothers-at-work-the-effects-of-2r42b8r6qe.pdf

Preschoolers Enrolled and Mothers at Work? The Effects of Universal Prekindergarten

Many argue that childcare costs limit the labor supply of mothers, though existing evidence has been mixed. Using a child's eligibility for public kindergarten in a regression discontinuity instrumental variables framework, I estimate how use of a particular subsidy, public school, affects maternal labor supply. I find public school enrollment increases only the employment of single mothers without additional young children. I compare this result to previous work, focusing on striking increases in a similar setting but earlier period (Gelabch 2002). Differences in the population of mothers, labor supply, and patterns of lifecycle events likely drive the discrepancy in results.

Revising Our Thinking About the Relationship Between Maternal Labor Supply and Preschool

This article synthesizes the long-term findings from three major evaluations of programs that began in the late 1980s and were designed to improve the self-sufficiency of teenage mothers on welfare...

Teenage parent programs. A synthesis of the long-term effects of the New Chance Demonstration, Ohio's Learning, Earning, and Parenting Program, and the Teenage Parent Demonstration.

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Teenage parent programs. A synthesis of the long-term effects of the New Chance Demonstration, Ohio's Learning, Earning, and Parenting Program, and the Teenage Parent Demonstration.