Chapter 1. Introduction of the students that are so-called ‘insufficiently literate’, indicating the proportion of students whose performance is insufficient to function independently in society. According to Meelissen et al. (2023), a third of the Dutch students are insufficiently literate in reading and a quarter of them is insufficiently literate in math. They note that this proportion exceeds the OECD average for reading and is comparable to the OECD average for math. How do basic skills develop? Given the importance of basic skills for economies and individuals, and that current trends in skill proficiency levels are cause for concern, it is essential to understand how these skills develop. Kautz et al. (2014) present a conceptual scheme, as illustrated in Figure 1.2, to understand the skill development process. The framework illustrates that skills originate before birth and depicts, as shown from top to bottom in the figure, the process of their development from early life through to adulthood. Skills develop dynamically by investments at different life stages. Skills at birth are determined by inherited traits and prenatal investments. In further life stages, the skill development process is determined by a complex interplay of the stock of skills acquired early on and investments. The process that an increase in the stock of skills in one period relates to the stock of skills in a subsequent period, is also referred to as the ‘self-productivity’ of skills (e.g., Cunha & Heckman, 2007; Kautz et al., 2014). Skill development is affected 6
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