Open AccessTHE ECONOMICS AND PSYCHOLOGY OF INEQUALITY AND HUMAN DEVELOPMENT
Author(s) -
Cunha Flavio,
Heckman James J.
Publication year - 2009
Publication title -
journal of the european economic association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 7.792
H-Index - 93
eISSN - 1542-4774
pISSN - 1542-4766
DOI - 10.1162/jeea.2009.7.2-3.320
Subject(s) - disadvantage , excellence , human development (humanity) , inequality , investment (military) , economics , affect (linguistics) , early childhood , personality , child development , psychology , economic growth , social psychology , developmental psychology , political science , mathematical analysis , mathematics , communication , politics , law
Recent research on the economics of human development deepens understanding of the origins of inequality and excellence. It draws on and contributes to personality psychology and the psychology of human development. Inequalities in family environments and investments in children are substantial. They causally affect the development of capabilities. Both cognitive and noncognitive capabilities determine success in life but to varying degrees for different outcomes. An empirically determined technology of capability formation reveals that capabilities are self‐productive and cross‐fertilizing and can be enhanced by investment. Investments in capabilities are relatively more productive at some stages of a child's life cycle than others. Optimal child investment strategies differ depending on target outcomes of interest and on the nature of adversity in a child's early years. For some configurations of early disadvantage and for some desired outcomes, it is efficient to invest relatively more in the later years of childhood than in the early years. (JEL: A12)