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Integrating Early-life Shocks and Human Capital Investments on Children´s Education

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  • Duque, Valentina
  • Rosales-Rueda, María
  • Sánchez, Fabio

Abstract

This study investigates how early-life conditions interact with subsequent human capital investments to influence future educational outcomes. To provide causal evidence, we exploit two sources of exogenous variation: i) variation in early-life environments resulting from a child's exposure to extreme rainfall and drought shocks in early-life; and ii), variation in subsequent investments resulting from the availability of conditional cash transfers (CCT) that promote investments in children's health and education. Using Colombian administrative data, we combine a natural experiment with a regression discontinuity design using the CCT assignment rule. Results show that, although the CCT has an overall positive impact on children's educational outcomes, it does not have a differential effect on children exposed to early-life shocks; however, the overall effect of the program is large enough to mitigate the negative impact of the weather shock. These findings have important policy implications as they provide evidence of the role of social policies in closing gaps generated by early-life trauma.

Suggested Citation

  • Duque, Valentina & Rosales-Rueda, María & Sánchez, Fabio, 2016. "Integrating Early-life Shocks and Human Capital Investments on Children´s Education," Research Department working papers 955, CAF Development Bank Of Latinamerica.
  • Handle: RePEc:dbl:dblwop:955
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    File URL: http://scioteca.caf.com/handle/123456789/955
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    Cited by:

    1. Herrera Almanza, Catalina & Cas, Ava, 2017. "Resilience to Shocks during Adolescence and Later Human Capital Outcomes: Evidence from Natural Disasters in the Philippines," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259129, Agricultural and Applied Economics Association.

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    Keywords

    Desarrollo social; Educación; Equidad e inclusión social; Investigación socioeconómica; Salud; Niñez; Familia;

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