AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Measuring the Growth of Skills
AEA Papers and Proceedings
(pp. 278–283)
Abstract
This paper discusses a fundamental problem in measuring the growth of knowledge and comparing the skills of people. New skills emerge that are not just more of the previously acquired skills. Psychometric convention forces these skills into arbitrarily constructed scales, which can severely distort measurement. To formally address this problem, we measure skills using a novel measurement scheme, estimate a stochastic learning process, and reject the common scale assumption across levels for language and cognitive skills. Furthermore, we estimate dynamic complementarity without imposing arbitrary scales for skills.Citation
Heckman, James, Haihan Tian, Zijian Zhang, and Jin Zhou. 2026. "Measuring the Growth of Skills." AEA Papers and Proceedings 116: 278–283. DOI: 10.1257/pandp.20261112Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- I26 Returns to Education
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- P25 Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics
- P36 Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty