Figure 1.2: The skill development process. Note. This figure shows the conceptual framework for the skill development process. Source: Kautz et al. (2014), page 32. by investments from parents, the environment and schooling but the returns to these investments are also determined by the earlier stock of skills. The larger the stock of skills in one period, the more individuals benefit from investments, which is also referred to as ‘dynamic complementarity’ (e.g., Cunha & Heckman, 2007; Kautz et al., 2014). As suggested from this framework, early skills form an important foundation for the development of future skills. The third and fourth chapter of this dissertation focus on the development of skills throughout the primary school period. In the third chapter, I consider students’ skill levels in the beginning of primary 7
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