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The Long-term Effects of Early Lead Exposure: Evidence from a case of Environmental Negligence

Author

Listed:
  • Tomás Rau
  • Loreto Reyes
  • Sergio S. Urzúa

Abstract

This paper estimates the effect of early lead exposure on academic achievement and adult earnings. We analyze longitudinal information from individuals attending primary and secondary schools in the city of Arica (in northern Chile). Between 1984 and 1989, Arica received more than 20,000 tons of toxic chemicals containing high concentrations of lead. Initially, the chemical waste was located several kilometers from the city. However, Arica's rapid expansion, which included the construction of housing projects just meters away from the waste deposit, put a large number of families at risk. Our data include information on residential proximity to the polluted area, levels of lead exposure, comprehensive demographic information, nationally representative academic test scores and administrative data on adult earnings. We document a strong relationship between blood lead levels and student academic performance. We find that an increase of one microgram of lead per deciliter of blood reduces math and language scores by 0.15 and 0.21 standard deviations, respectively. For earnings, we estimate that for each extra microgram of lead, monthly earnings decrease by CLP 11,458 (or USD 22.92). This translates into a reduction of USD 6,000 in lifetime earnings per microgram of lead per deciliter of blood.

Suggested Citation

  • Tomás Rau & Loreto Reyes & Sergio S. Urzúa, 2013. "The Long-term Effects of Early Lead Exposure: Evidence from a case of Environmental Negligence," NBER Working Papers 18915, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:18915
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    References listed on IDEAS

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    1. Raimundo Soto & Arístides Torche, 2004. "Spatial Inequality, Migration and Economic Growth in Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(124), pages 401-424.
    2. Janet Currie & Reed Walker, 2011. "Traffic Congestion and Infant Health: Evidence from E-ZPass," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 65-90, January.
    3. Karen Clay & Werner Troesken & Michael Haines, 2014. "Lead and Mortality," The Review of Economics and Statistics, MIT Press, vol. 96(3), pages 458-470, July.
    4. Werner Troesken, 2010. "Lead, Mortality, and Productivity," Working Paper 424, Department of Economics, University of Pittsburgh, revised Jan 2010.
    5. Karen Clay & Werner Troesken & Michael Haines, 2006. "Lead Pipes and Child Mortality," NBER Working Papers 12603, National Bureau of Economic Research, Inc.
    6. Raimundo Soto & Aristides Torche, 2004. "Spatial Inequality in Chile," Econometric Society 2004 Latin American Meetings 241, Econometric Society.
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    Cited by:

    1. Prashant Bharadwaj & Matthew Gibson & Joshua Graff Zivin & Christopher Neilson, 2017. "Gray Matters: Fetal Pollution Exposure and Human Capital Formation," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 505-542.
    2. Christopher Hansman & Jonas Hjort & Gianmarco León, 2019. "Interlinked firms and the consequences of piecemeal regulation," Journal of the European Economic Association, European Economic Association, vol. 17(3), pages 876-916.
    3. Sebastian Miller & Mauricio Vela, 2013. "The Effects of Air Pollution on Educational Outcomes: Evidence from Chile," Research Department Publications IDB-WP-468, Inter-American Development Bank, Research Department.
    4. Lucy C. Sorensen & Ashley M. Fox & Heyjie Jung & Erika G. Martin, 2019. "Lead exposure and academic achievement: evidence from childhood lead poisoning prevention efforts," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 179-218, January.
    5. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2017. "Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 848-902.
    6. Batdelger, Tuvshintugs & Zagdbazar, Manlaibaatar, 2022. "Does mining improve rural livelihood?: Evidence from Mongolia," Resources Policy, Elsevier, vol. 78(C).
    7. Christopher Hansman & Jonas Hjort & Gianmarco León, 2015. "Firm's response and unintended health consequences of industrial regulations," Economics Working Papers 1469, Department of Economics and Business, Universitat Pompeu Fabra.
    8. Stephen B. Billings & Kevin T. Schnepel, 2018. "Life after Lead: Effects of Early Interventions for Children Exposed to Lead," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 315-344, July.

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    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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