Abstract
We estimate month-of-birth effects on cognitive and noncognitive skills, as well as factors relevant to skill formation. Our estimates indicate that younger students in a given grade cohort have lower cognitive and noncognitive skills. To shed light on the underlying mechanisms, we also examine children's time use and interpersonal relationships. We i¬ nd evidence of compensatory investment in cognitive skills by younger children, however, they are also more likely to have poor-quality relationships with their classmates and teachers, which may harm the long-term development of noncognitive skills. Our i¬ ndings on skill formation have implications for efi¬ ciency and equity.
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