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Figure 4: Impact of the ABC program on Skills Formation (a) IQ Scores by Age and Treatment Group (b) Reading Scores by Age and Treatment
Figure 4: Impact of the ABC program on Skills Formation (a) IQ Scores by Age and Treatment Group (b) Reading Scores by Age and Treatment Group Figure 4 presents evidence on the effect of the ABC program on skill formation 1. Is the ABC program more related to a short-term credit constraint policy or to a long- term credit constraint policy? (Short-term / Long-term) 2. We observe a steady gap between the treatment and control groups for IQ and Reading Scores, revealing a positive and significant effect on skills formation. However, the slope of both groups are negative across time. Is this consistent with the evidence on self- productivity for cognitive skills that was presented in class? (Yes/No) 3. Is the decreasing pattern in the levels of test scores consistent with the idea of human capital depreciation? (Yes/No) 4. An interesting effect of the ABC presented in class is related with smoke habits. Assume that this effect can be explained by the skills acquired during the schooling years. Is the effect due to: i) cognitive skills, or ii) non-cognitive skills, iii) Both type of skills (Think carefully about the activities carried out during the intervention, and how they could have had an effect on skills formation, and its later impact on smoking habits) V. Download the NLSY79 database with information of individuals at age 30 provided through ELMS. For the purpose of this question you can use your favorite software (Excel, R, etc.). 1. Replicate Figure 5, which plots the log hourly wage of individuals in different percentiles of the AFQT by gender. Describe the most striking pattern from this figure. (No more than 50 words)
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