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Would greater household wealth make young children smarter?

Author

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  • Pham, Thai Minh
  • Tran, Tuyen Quang

Abstract

Drawing on the Young Lives data obtained from three cycles of surveys from 2006 to 2016, our study examines factors affecting children’s cognitive ability in Vietnam. Controlling for the conditional wealth, which is the residual of the regression equation of the household wealth index in 2006 and 2013, our study provides evidence that conditional wealth has an effect of increasing the cognitive capacity of 15-year-old children, manifested in all three methods of measurement: by vocabulary points, math scores and reading comprehension scores in Vietnamese. This finding once again confirms that late intervention after the first 1,000 days has a positive impact on children's cognitive ability. Notably, our finding suggests that using the conditional wealth enables to capture the impact of economic shocks, which in turn have a significant effect on the cognitive ability of children in Vietnam.

Suggested Citation

  • Pham, Thai Minh & Tran, Tuyen Quang, 2021. "Would greater household wealth make young children smarter?," MPRA Paper 107168, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107168
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D10 - Microeconomics - - Household Behavior - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D6 - Microeconomics - - Welfare Economics
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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