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Transitory shocks and long-term human capital accumulation: the impact of conflict on physical health in Peru

Author

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  • Sanchez, Alan

    (Banco Central de Reserva del Perú)

Abstract

The 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.

Suggested Citation

  • Sanchez, Alan, 2010. "Transitory shocks and long-term human capital accumulation: the impact of conflict on physical health in Peru," Working Papers 2010-020, Banco Central de Reserva del Perú.
  • Handle: RePEc:rbp:wpaper:2010-020
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    File URL: http://www.bcrp.gob.pe/docs/Publicaciones/Documentos-de-Trabajo/2010/Documento-de-Trabajo-20-2010.pdf
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    References listed on IDEAS

    as
    1. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    2. Glewwe, Paul & Jocoby, Hanan & King, Elizabeth M., 1999. "Early childhood nutrition and academic achievement," FCND discussion papers 68, International Food Policy Research Institute (IFPRI).
    3. Tom Bundervoet & Philip Verwimp & Richard Akresh, 2009. "Health and Civil War in Rural Burundi," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
    4. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    5. John A. Maluccio, & John Hoddinott & Jere R. Behrman & Reynaldo Martorell & Agnes R. Quisumbing & Aryeh D. Stein, 2003. "The Impact of Nutrition during Early Childhood on Education among Guatemalan Adults," PIER Working Paper Archive 06-026, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Aug 2006.
    6. Chamarbagwala, Rubiana & Morán, Hilcías E., 2011. "The human capital consequences of civil war: Evidence from Guatemala," Journal of Development Economics, Elsevier, pages 41-61.
    7. Chamarbagwala, Rubiana & Morán, Hilcías E., 2011. "The human capital consequences of civil war: Evidence from Guatemala," Journal of Development Economics, Elsevier, pages 41-61.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Health Production; Human Capital; Conflict; Children;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • 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, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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