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.

This paper demonstrates the long-term intragenerational and intergenerational benefits of the HighScope Perry Preschool Project, which targeted disadvantaged African-American children. We use newly collected data on the original participants through late middle age and on their children into their mid-twenties. We document long-lasting improvements in the original participants' skills, marriage stability, earnings, criminal behavior, and health. Beneficial program impacts through the childrearing years translate into better family environments for their children leading to intergenerational gains. Children of the original participants have higher levels of education and employment, lower levels of criminal activity, and better health than children of the controls.