The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills
Mikkel Aagaard Houmark, Victor Ronda, Michael Rosholm
American Economic Review · 2024 · Volume 114 · Issue 2
Abstract
This paper studies the interplay between genetics and family investments in the process of skill formation. We model and estimate the joint evolution of skills and parental investments throughout early childhood. We document three genetic mechanisms: the direct effect of child genes on skills, the indirect effect of child genes via parental investments, and family genetic influences captured by parental genes. We show that genetic effects are dynamic, increase over time, and operate via environmental channels. Our paper highlights the value of integrating biological and social perspectives into a single unified framework.
Keywords
Education and Inequality, Returns to Education, Marriage, Marital Dissolution, Family Structure, Domestic Abuse, Fertility, Family Planning, Child Care, Children, Youth, Human Capital, Skills, Occupational Choice, Labor Productivity
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