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Flexible estimation of skill formation models

Antonia Antweiler, Joachim Freyberger

arXiv 25 Jul 2025 · Econometrics

arXiv:2507.18995 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper examines estimation of skill formation models, a critical component in understanding human capital development and its effects on individual outcomes. Existing estimators are either based on moment conditions and only applicable in specific settings or rely on distributional approximations that often do not align with the model. Our method employs an iterative likelihood-based procedure, which flexibly estimates latent variable distributions and recursively incorporates model restrictions across time periods. This approach reduces computational complexity while accommodating nonlinear production functions and measurement systems. Inference can be based on a bootstrap procedure that does not require re-estimating the model for bootstrap samples. Monte Carlo simulations and an empirical application demonstrate that our estimator outperforms existing methods, whose estimators can be substantially biased or noisy.

Citation extraction

24
references
150
in-text mentions
24
distinct cited
1
self-citations
15,411
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Attanasio, O., C. Meghir, and E. Nix (2020) Human capital development and parental investment in India1.000527100%
2Agostinelli, F. and M. Wiswall (2025) Estimating the technology of children’s skill formation1.000335100%
3Cunha, F., J. Heckman, and S. Schennach (2010) Estimating the technology of cognitive and noncognitive skill formation1.000194100%
4Freyberger, J (2024) Normalizations and misspecification in skill formation models self1.000156100%
5Attanasio, O., S. Cattan, E. Fitzsimons, C. Meghir, and M. Rubio-Codin (2020) Estimating the production function for human capital: Results from a randomized control trial in Colombia0.73732100%
6Cunha, F. and J. Heckman (2008) Formulating, identifying and estimating the technology of cognitive and noncognitive skill formation0.73732100%
7Attanasio, O., R. Bernal, M. Giannola, and M. Nores (2020) Investment and the changing dynamics of different dimensions0.64422100%
8Attanasio, O., C. Meghir, E. Nix, and F. Salvati (2017) Human capital growth and poverty: Evidence from Ethiopia and Peru0.64422100%
9Adhvaryu, A., A. Nyshadham, and J. Tamayo (2023) Managerial quality and productivity dynamics0.64422100%
10Bolt, U., E. French, J. Hentall-MacCuish, and C. O'Dea (2024) The intergenerational elasticity of earnings: Exploring the mechanisms0.64422100%

Showing the top 10 of 24 scored citations.