James Heckman

Lore & Background

Heckman was born to John Jacob Heckman and Bernice Irene Medley in Chicago, Illinois. He received his B.A. in mathematics from Colorado College in 1965 and his Ph.D. in economics from Princeton University in 1971 under Stanley W. Black. He served as an assistant professor at Columbia University before moving to the University of Chicago in 1973. He has been a dissertation advisor for over 70 students, including Carolyn Heinrich, George Borjas, and Russ Roberts.

Heckman is noted for his contributions to selection bias and self-selection analysis, especially the Heckman correction, which earned him the Nobel Prize. His research has focused on developing a scientific basis for economic policy evaluation, emphasizing heterogeneity and unobserved counterfactual states. He demonstrated a strong causal effect of the Civil Rights Act of 1964 in promoting African-American economic progress and showed that the high school dropout rate is increasing in the US. He also found that conscientiousness, rather than IQ, is a key driver of financial success.

Heckman founded and directs the Center for the Economics of Human Development (CEHD) at the University of Chicago, which encompasses initiatives such as the Human Capital and Economic Opportunity Global Working Group and the Pritzker Consortium on Early Childhood Development. He has published over 300 articles and several books, including 'The Myth of Achievement Tests: The GED and the Role of Character in American Life.' He is a member of the National Academy of Sciences and the American Philosophical Society.

Reader's Guide

James Heckman's significance lies in his transformative contributions to econometrics and labor economics. His development of the Heckman correction provided a rigorous method to address selection bias in quantitative social science, fundamentally improving the validity of empirical research. This work earned him the Nobel Memorial Prize in Economic Sciences in 2000, shared with Daniel McFadden. His empirical research on early childhood education programs has shaped policy debates, demonstrating the long-term economic benefits of investing in early human development. Heckman's analysis of the GED certificate revealed its limitations, influencing educational policy. His work on the Civil Rights Act of 1964 provided evidence of its positive economic impact on African Americans. As of June 2024, he is ranked the third-most influential economist in the world by RePEc. His legacy includes not only methodological innovations but also practical insights into inequality, skill formation, and the economics of human development, making him a central figure in modern economic thought.

Did You Know?

• Heckman received the John Bates Clark Medal in 1983 and the Nobel Memorial Prize in Economic Sciences in 2000.
• He is the third-most influential economist in the world as of June 2024, according to RePEc.
• He demonstrated that a high IQ only improved an individual's chances of financial success by 1 or 2%, while conscientiousness was more important.
• Heckman has been a dissertation advisor for over 70 students.