Home and School in the Development of Children

ABSTRACT We develop an empirical framework integrating Child Development and Education Production Function literature. It accounts for classroom and parental influences, skill measurement issues, and cognitive/noncognitive interactions. Both home and school investments shape children's skills by kindergarten, with low‐skill children benefiting most from improvements. While classrooms are generally more productive, reducing disparities in home investments is more effective in closing income‐related skill gaps. This stems from greater inequality in home investments than in school quality across socioeconomic groups.