Incentives and investment in schooling and parenting

In an interview with Paul Solman at PBS, Nobel Prize-winning economist James Heckman discusses the achievement gap, IQ testing, early childhood education, and parenting, framing the issues from the perspective of incentives and investment.

Let me give you a startling finding about achievement gaps. Suppose you pay children in the 5th and 6th grades, right when you think of the achievement gap opening up between blacks and whites, to take an IQ test.

Say you have unmotivated black kids living in the middle of the ghetto and white kids from Scarsdale or some other upper-class neighborhood. You give each kid who gets a successful answer one M&M — just give them an M&M — and you say for each point extra on the IQ test, each correct answer, I’ll give you one more M&M. It turns out that the gap between the black and white student in the IQ test scores vanishes — vanishes completely.

The interventions in the “enriched parenting” programs include the usual: reading regularly to kids, providing encouragement, and simply giving the kids time to formulate and act upon a plan.

We need to think about these factors as social investments which the children eventually internalize, so that they are better positioned to succeed later in life.

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