(Luận văn) parental investment and the joint evolution of children’s cognitive and non cognitive skills evidences in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM ERASMUS UNIVERSITY ROTTERDAM INSTITUTE OF SOCIAL STUDIES THE NETHERLANDS t to ng hi ep VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS w n lo ad ju y th yi PARENTAL INVESTMENT AND THE JOINT pl n ua al EVOLUTION OF CHILDREN’S COGNITIVE n va AND NON-COGNITIVE SKILLS: fu ll EVIDENCES IN VIETNAM oi m at nh z z k jm TRAN KHANH HOA ht vb BY l.c gm MASTER OF ARTS IN DEVELOPMENT ECONOMICS om an Lu n va ey t re HO CHI MINH CITY, December 2017 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDS t to ng hi ep VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS w n lo ad ju y th yi PARENTAL INVESTMENT AND THE JOINT EVOLUTION OF CHILDREN’S COGNITIVE AND NON-COGNITIVE SKILLS: EVIDENCES IN VIETNAM pl n ua al n va ll fu oi m nh A thesis submitted in partial fulfilment of the requirements for the degree of at MASTER OF ARTS IN DEVELOPMENT ECONOMICS z z k jm TRAN KHANH HOA ht vb By om Dr PHAM KHANH NAM l.c gm Academic Supervisor: an Lu n va ey t re HO CHI MINH CITY, December 2017 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re DECLARATION t to ng In order to fulfill the requirements for the degree of Master of Art in Development hi ep Economics to Vietnam – The Netherlands Programme (VNP), this thesis entitled “Parental investments and the joint evolution of children’s cognitive and non- w cognitive skills: Evidence in Vietnam” is submitted n lo ad ju y th This declaration certify that this thesis constitutes on my original work only All materials used in this thesis have been acknowledged and cited properly following yi pl the Programme’s standards al n ua TRAN KHANH HOA n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re ACKNOWLEDGEMENTS t to ng hi Academically, I would like to express my sincere gratitude to Dr Pham Khanh Nam, ep Dr Truong Dang Thuy and Mr Do Huu Luat for the valuable comments, instructions and support, without which my thesis would have not been completed w n lo ad Personally, I would like to thank my big family, my loved one and friends for the y th great care, understanding, encouragement, tolerance and patience during my tough ju time of writing the thesis yi pl n ua al va Tran Khanh Hoa n ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re ABSTRACT t to ng hi ep Given the importance of skill set as a predictor of life outcomes, this study investigates the effect of parental investment on the development of cognitive and w n non-cognitive skills of 2,000 children, who were tracked from age to age 12, using lo ad longitudinal data from Young Lives project in Vietnam A model of skill formation y th is estimated using ordinary least squares and full information maximum likelihood as ju yi well as instrumental-variables to cope with missing values and potential endogeneity pl Cognitive and non-cognitive skills are latent variables obtained from confirmatory al n ua factor analysis There are three important findings in this study Firstly, the results va support that parental investment plays a crucial role in the development of both n cognitive and non-cognitive skills in the first 12 years of child’s life Secondly, there fu ll is compelling evidence for the presence of self-productivity of cognitive-skills as well m oi as cross-productivity from cognitive skills to non-cognitive skills and vice versa nh at Thirdly, the time span until the age of 12 is found to be critical period for the z development of cognitive skills while the age of and the age of are sensitive z ht vb periods for cognitive skills relative to the age of 12 These findings support policy jm towards an education reform which help to promote not only cognitive skills but also k non-cognitive skills; and policy towards an early childhood intervention programs, l.c gm which aim at children living under disadvantage circumstances om JEL Classification: an Lu Keywords: parental investment, cognitive skill, non-cognitive skills, critical and sensitive periods, children n va ey t re i TABLE OF CONTENTS t to ABSTRACT i ng ABBREVIATION iv hi LIST OF FIGURES .v ep LIST OF TABLES .vi w Chapter INTRODUCTION n Problem statement 1.2 Research objectives 1.3 Scope of the study 1.4 Structure of the thesis lo 1.1 ad ju y th yi pl Chapter LITERATURE REVIEW al Human capital theory: skills matter 2.2 Cognitive skills and non-cognitive skills: measures and impacts 2.3 Determinants of skill development n ua 2.1 n va fu Genetic endowment 2.3.2 Environment oi at nh Dynamics of skill development 11 2.4.1 Critical and sensitive periods: timing of parental investment 12 z Analytical framework 13 z 2.5 m 2.4 ll 2.3.1 vb Methodology 15 k jm 3.1 ht Chapter RESEARCH METHODOLOGY 15 Technology of skill formation 15 3.1.2 Genetic endowment – Initial conditions 17 l.c gm 3.1.1 om 3.1.3 Method in cognitive, non-cognitive skills measurement: Latent variables 18 3.2 Instrument Variables 18 Data 19 Variables description 21 4.1 Overview 25 ii ey Chapter RESEARCH RESULTS 25 t re 3.2.2 n Data source 19 va 3.2.1 an Lu 3.1.4 4.2 Descriptive statistics 28 t to ng hi 4.2.1 Summary statistics 28 4.2.2 Bivariate analysis 36 4.2.3 Empirical results 39 ep Chapter CONCLUSIONS 57 5.1 Conclusion 57 w n 5.2 Policy implication .59 lo ad 5.3 Limitations and further research .59 y th REFERENCES 61 ju APPENDIX 67 yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re iii ABBREVIATION t to ng hi Cognitive Developmental Assessment EGRA Early Grade Reading Assessment FIML Full Information Maximum Likelihood OLS Ordinary Least Square PPVT Peabody Picture Vocabulary Test ep CDA w n lo ad ju y th yi pl PRF Psychosocial Risk Factor ua al Young Lives n YL va Sustainable Development Goals UIS UNESCO Institution of Statistics n SDG ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re iv Table 17: Results - Round - Age (Detailed expenditure) t to ng hi ep Dependent variable: Cognitive skills – Age OLS Model Model (1) (2) CH health 0.079 -0.451 (0.828) (0.830) w FIML Model Model (3) (4) 0.057 -0.279 (0.707) (0.698) n y th ju yi 0.024 (0.016) 0.020 (0.015) -0.004 (0.010) 0.001 (0.009) 0.0002 (0.006) -0.001 (0.006) 0.019*** (0.004) 0.018*** (0.004) 0.018*** (0.004) 0.018*** (0.005) -0.819 (1.985) -1.923 (1.637) -1.797 (1.610) -1.781 (1.243) -1.278 (1.284) -1.410 (0.943) -1.165 (0.950) 17.57*** (3.918) 22.63*** (3.434) 21.09*** (3.480) 7.599 (6.504) 10.79* (6.344) 1.600 (2.364) pl 0.043** (0.018) k ad Education exp 0.048** (0.019) fu lo Clothing exp n ua al Presents exp va CH male n -0.471 (1.971) ll oi at z z 19.82*** (3.834) nh Preschool m CH siblings 7.939 (7.854) CG complete Primary school 6.104** (2.892) 3.050 (2.938) 3.846 (2.347) CG complete Secondary school 12.53*** (3.015) 10.79*** (3.039) 12.28*** (2.484) CG complete Vocational/High school 17.15*** (4.275) 16.67*** (4.236) 16.35*** (3.436) 15.51*** (3.399) CG complete University or higher 22.30*** (6.145) 22.88*** (6.916) 23.62*** (4.668) 23.04*** (4.707) 3.500 (2.990) 3.751 (3.057) 4.474* (2.525) 3.667 (2.513) l.c gm 10.45*** (2.493) an Lu n va ey t re 71 jm HH social connectedness index ht 6.729 (7.829) om vb Parent altruism t to ng Dependent variable: Cognitive skills – Age OLS Model Model (1) (2) HH size -0.110 0.151 (0.856) (0.888) hi FIML Model Model (3) (4) 0.716 1.196* (0.624) (0.621) ep HH urban 25.28*** (3.691) 22.25*** (2.246) 23.07*** (2.685) 0.004 (0.010) -6.91e-05 (0.009) -0.0253 (0.016) -0.0226 (0.015) -0.049*** (0.019) -0.047** (0.018) 0.0005 (0.006) 0.001 (0.007) -0.0134*** (0.00439) -0.0147*** (0.00435) -0.0132*** (0.00431) w 21.81*** (2.812) n lo ad HH urban * Edu exp y th ju HH urban * Clothing exp yi pl -0.0145*** (0.00452) n ua al HH urban * Present exp -0.294*** (0.0592) -82.77*** (12.45) fu -0.320*** (0.0681) ll n va -97.74*** (16.23) oi m CM Social Economic Status CM Social Problem nh -33.85*** (7.967) -26.87*** (8.338) 1,344 1,292 -40.38*** (6.543) -36.08*** (6.692) at Constant z z vb Observations 1,970 1,970 k jm ht om l.c gm an Lu n va ey t re 72 Table 18: Results on cognitive skills - Round - Age (Detailed expenditure) t to ng hi ep Dependent Variable: Cognitive skills - age OLS Model Model (1) (2) Cognitive skills 0.015*** 0.016*** (0.004) (0.004) FIML w n lo ad Clothing exp ju y th Education exp yi pl 0.002** (0.001) 0.002*** (0.001) 0.002*** (0.001) 0.001*** (0.0002) 0.001*** (0.0002) 0.001*** (0.0002) 0.001*** (0.0001) 0.000373 (0.000468) 0.000358 (0.000451) 0.000308 (0.000459) 0.000243 (0.000493) 0.596 (0.503) 0.277 (0.449) 0.530 (0.426) 1.140*** (0.248) 1.001*** (0.230) 1.022*** (0.220) -0.747*** (0.154) -0.413*** (0.145) 5.989*** (0.361) 5.540*** (0.341) va 0.436 (0.504) n ll fu Quality of CG-CH relationship Model (4) 0.015*** (0.004) 0.002*** (0.001) n ua al Presents exp Model (3) 0.014*** (0.004) CH siblings -0.774*** (0.199) -0.560*** (0.197) CH years of schooling 5.507*** (0.384) 5.217*** (0.390) CH height 0.984*** (0.130) 0.785*** (0.129) 1.098*** (0.123) 0.805*** (0.110) CG complete Primary school 1.918*** (0.342) 1.013*** (0.354) 2.283*** (0.307) 1.138*** (0.308) CG complete Secondary school 2.751*** (0.352) 1.870*** (0.364) 2.956*** (0.322) 1.894*** (0.321) CG finish Vocational /High school 2.638*** (0.471) 1.764*** (0.510) 2.894*** (0.402) 1.752*** (0.409) 3.001*** 2.451*** 3.240*** 2.203*** oi 1.121*** (0.245) gm m CH male at nh z z k jm ht vb om l.c an Lu n va ey t re 73 t to ng Dependent Variable: Cognitive skills - age OLS Model Model (1) (2) CG complete (0.554) (0.584) University or higher CG trust index -0.495** -0.510** (0.228) (0.225) FIML hi ep Model (3) Model (4) (0.513) (0.482) -0.375* (0.210) -0.280 (0.198) w -1.692 (1.917) -0.224 (1.648) -0.0110 (1.606) -0.261* (0.149) -0.278* (0.146) -0.333*** (0.110) -0.331*** (0.0966) 4.008*** (0.457) 3.860*** (0.687) 3.942*** (0.420) 4.687*** (0.536) HH urban * Clothing exp -0.002** (0.000764) -0.002* (0.0008) -0.001** (0.000647) -0.001* (0.001) HH urban * Edu exp -0.001*** (0.0002) -0.0007*** (0.0002) m -0.001*** (0.0002) -0.0008*** (0.0002) HH urban * Presents exp -0.002** (0.0007) -0.001* (0.001) -0.001** (0.001) -0.001* (0.001) lo -1.593 (1.839) al n HH social connectedness index ad ju y th HH size yi pl HH urban n ua n va ll fu oi at nh z 2,000 2,000 an Lu 1,355 -7.223*** (0.888) om -10.77*** (0.859) l.c -7.082*** (1.091) 0.446 (1.000) gm n va Observations 1,454 Robust standard errors in parentheses *** p