Towards social relationships: a Bayesian Model averaging approach to identify determinants of children’s character skills

Abstract The importance of character skills has been widely recognized as a crucial component of human capital over the past decades. However, effective strategies for cultivating these skills remain an area of ongoing exploration. This study introduces the use of Bayesian Model Averaging to identify key factors influencing children’s character skills within an investment framework. Drawing on survey data from China and evaluating nearly 50 potential factors, this research reveals that the social-relationship factors—including parenting styles, teacher-student interactions, peer relationships, and school bullying—show greater importance in influencing children’s character skills than the traditionally emphasized endowments and resource inputs. These results challenge the traditional resource-focused educational investment paradigm and underscore the pivotal role of relationships between children and their parents, teachers, and peers in character development. Moreover, this study highlights a promising pathway to breaking the cycle of intergenerational poverty by prioritizing social-relationship investments to improve children’s character skills.