Transitory shocks and long-term human capital accumulation: the impact of conflict on physical health in Peru
AbstractThe recent literature on human capital highlights the importance of investments during the first few years after birth as a determinant of economic outcomes later in life, including labour productivity. This paper assesses the relationship between conflict exposure -a transitory, aggregate, shock- and early nutrition. The relationship between conflict exposure and human capital outcomes can be put into doubt due to the endogenous nature of conflict. In this paper I use a rich dataset that permits me to trace the intensity of a country-specific, large-scale, conflict across regions and over time at the monthly frequency over a 20-year period. I use this data to link conflict exposure prevalent around the time of birth to child-level outcomes of birth cohorts born over an analogous time period. The identification strategy exploits differences in the intensity of exposure between siblings in turn determined by year-month of birth. Results show that, on average, early exposure to conflict did not have an effect on infant mortality but had large negative effects on short-term nutritional outcomes, particularly for the poor. These results suggest that, unless compensatory investments were at place, the Peruvian conflict might have had long-term effects on human capital accumulation through a nutritional channel.
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Bibliographic InfoPaper provided by Banco Central de Reserva del Perú in its series Working Papers with number 2010-020.
Date of creation: Dec 2010
Date of revision:
Health Production; Human Capital; Conflict; Children;
Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-16 (All new papers)
- NEP-HEA-2011-01-16 (Health Economics)
- NEP-LAB-2011-01-16 (Labour Economics)
- NEP-MIC-2011-01-16 (Microeconomics)
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