Experimental Design
This study combines a belief elicitation experiment (BEE) with longitudinal data to recover caregivers’ subjective beliefs on returns to investments, and compare them to the objective technology of skill formation. The BEE is designed to elicit caregivers’ beliefs about the returns to key inputs in children’s maths development: educational expenditures, parenting styles, and child skills. In addition, the design allows us to study beliefs about the timing of investments by distinguishing between inputs made in early childhood and early adolescence, as well as to assess whether the perceived returns to investments varies across caregivers.
We will assign respondents to four treatment groups. In each arm, belief scenarios will consist of a short description of a hypothetical adolescent child and her parents, followed by a set of situations that vary along three dimensions: the child’s skills, parental monetary investments, and parenting styles. In two treatment arms, parental monetary investment in the child’s education will be fixed at levels made during early childhood (age 5) and adolescence (age 13) (high or low, depending on the arm), with variations in child initial skills and parenting style (as typically exerted at home during the same periods), one at a time. In the other two treatment arms, parenting style exerted during the different periods of childhood will be fixed (authoritarian or authoritative, depending on the arm), while child initial skill level and parental monetary investments (made during the same childhood periods) will vary, one at a time. For each situation, caregivers will be asked to report the age at which they believe the hypothetical adolescent will be able to correctly master two numeracy questions, an intermediate and a more advanced one, which are our marker of maths skill development in adolescence.
Importantly, we can observe the same maths questions object of the BEE as part of our longitudinal data. Indeed, the two questions were chosen as markers of "intermediate" and "more advanced" maths skills by studying their difficulty levels in previous waves of the longitudinal dataset by using item response theory (IRT). Among a pool of potential maths items in this survey, we then picked item that had the desired level of difficulty and that seemed understandable as "intermediate" and "more advanced" by parents in Ghana. To describe the hypothetical child’s initial skill, we use a similar approach, where we describe "a low skills child " as a child that can only solve easy numeracy items at age 5, and "a high skills child" as one that can solve both easy and medium difficulty items at age 5.
We will use the experimental variation embedded in the scenarios to estimate a subjective skill formation function that summarises parents’ beliefs about how inputs translate into child skill development. The experimental design will identify average perceived returns to each input, as well as differences in perceived returns across the different investment periods. As the sample is embedded in a rich panel data, we will use several available information, including the randomised assignment to both early childhood and adolescence interventions, and socioeconomic characteristics (e.g. parental education level), to explore heterogeneity by these characteristics. We will also explore heterogeneity by sex of the hypothetical child in the scenario.
We also aim to shed light on why parents might differ in their beliefs about the productivity of parental investments and parenting styles made during different child periods. To do so, after the BEE, we will administer survey questions about parental beliefs on the malleability of children’s skills and adaptability of parenting styles across child developmental stages. We will use this information to investigate whether perceived returns vary based on the individual responses.
To compare estimated subjective beliefs against the true skill formation process, we will estimate an objective skill formation technology using multiple waves of longitudinal data. We will use comprehensive information collected over time on actual parenting behaviors (to proxy parenting styles) and parental investments. When recovering the parameters of the objective technology of skill formation, we will address endogeneity of parental investments using an instrumental variable and/or control function method (Attanasio, Meghir & Nix, 2020).