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  4. February 2024
  5. The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills

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
vol. 114, no. 2, February 2024
(pp. 385-425)
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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.

Citation

Houmark, Mikkel Aagaard, Victor Ronda, and Michael Rosholm. 2024. "The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills." American Economic Review, 114 (2): 385-425. DOI: 10.1257/aer.20220456

Additional Materials

JEL Classification

  • I24 Education and Inequality
  • I26 Returns to Education
  • J12 Marriage; Marital Dissolution; Family Structure; Domestic Abuse
  • J13 Fertility; Family Planning; Child Care; Children; Youth
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity