Research / BFI Working PaperDec 28, 2020

The Social Side of Early Human Capital Formation: Using a Field Experiment to Estimate the Causal Impact of Neighborhoods

John List, Fatemeh Momeni, Yves Zenou

The behavioral revolution within economics has been largely driven by psychological insights, with the sister sciences playing a lesser role. This study leverages insights from sociology to explore the role of neighborhoods on human capital formation at an early age. We do so by estimating the spillover effects from a large-scale early childhood intervention on the educational attainment of over 2,000 disadvantaged children in the United States. We document large spillover effects on both treatment and control children who live near treated children. Interestingly, the spillover effects are localized, decreasing with the spatial distance to treated neighbors. Perhaps our most novel insight is the underlying mechanisms at work: the spillover effect on non-cognitive scores operate through the child’s social network while parental investment is an important channel through which cognitive spillover effects operate. Overall, our results reveal the importance of public programs and neighborhoods on human capital formation at an early age, highlighting that human capital accumulation is fundamentally a social activity.

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BFI Working Paper Apr 30, 2019

Measuring Success in Education: The Role of Effort on the Test Itself

John List, Uri Gneezy, Jeffrey A. Livingston, Xiangdong Qin, Sally Sadoff, Yang Xu
Topics:  Early Childhood Education
BFI Working Paper Oct 21, 2019

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Topics:  Employment & Wages
BFI Working Paper Aug 19, 2020

The $100 Million Nudge: Increasing Tax Compliance of Businesses and the Self-Employed using a Natural Field Experiment

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Topics:  Fiscal Studies