Cognitive Skills, Strategic Sophistication, and Life Outcomes

We investigate how childhood cognitive skills affect strategic sophistication and adult outcomes. In particular, we emphasize the importance of theory-of-mind as a skill. collected experimental data from more than seven hundred children in variety interactions. First, find that ability both predict level-k behavior. Second, older respond to information about their opponent, which provides support for emergence sophisticated theory-of-mind. Third, age strongly whether intentions gift-exchange game, while has no influence, suggesting different measures skill correspond processes situations involve understanding intentions. Using ALSPAC birth-cohort study, are associated with enhanced social skills, higher educational participation, better attainment, lower fertility young adulthood. Finally, provide evidence school spending improves childhood.