A: Family and education policies

Understanding the formation of human capital and the human-capital-driven pathways into life outcomes is of first-order importance. At the individual level, human capital is a key determinant of well-being and economic success; at the societal level, the distribution of human capital in the population affects social mobility and social cohesion. Individuals differ in all dimensions of human capital. This diversity is partly due to genetic influences, but vitally molded by the social and economic environment. Informal and formal institutions – such as the family and the school – interact in a complex process that depends on initial conditions, investments and shocks. The goal of project area A is to better understand this process and to contribute to the formulation of effective, evidence-based family and education policies.