Those things the young children learn will go directly into their mind and will remain in their mind life long.And similarly in the childhood each and every child have the ability to grasp things quickly whatever it is either good or bad.So it is we elders who are responsible to guide the children in a good track.

Inequality: Family Matters More than Institutions says James Heckman

According to Nobel Prize James Heckman, direct social transfers to families to develop the abilities of their children are more effective than money spent on retraining the unemployed.

Cognitive and non-cognitive abilities that are useful on the labor market get developed at an early age and mostly depend from family backgrounds. Already at three years of age, in IQ tests, children of highly educated and stable families obtain better scores that those living in less favorable family environments, and this difference more or less stays constant throughout life.

These conclusions were put forward by the 2000 Nobel Prize for Economics James Heckman, during the Marshall Lecture at the Annual Congress of the European Economic Association, which was held at Bocconi last week. In his intervention, titled The Psychology of Inequality, Heckman also emphasized the relevance of non-cognitive abilities such as motivation, which is of great value for the labor market and which can be transmitted to children.



To attain the objective of greater distributional equality, Heckman said, institutions should not think they can treat everybody the same. In addition, one's cultural sensibility gets developed at an early age, too, so the experiments with uprooting a kid from her or his own family, and implanting her or him in another with very different values, almost invariably end up in utter failures.