Early-life environment and human capital: evidence from the Philippines

Evan D. Peet

Environment and Development Economics, 2021, vol. 26, issue 1, 1-25

Abstract: This study examines how human capital develops in response to early-life weather and pollution exposures in the Philippines. Both pollution and weather are examined in relation to short- and long-term human capital outcomes. We combine a three-decade longitudinal survey measuring human capital development, a database of historical weather, and multiple databases characterizing carbon monoxide and ozone in the Philippines during the 1980s. We find evidence that extreme precipitation and temperature affect short-term anthropometric outcomes, but long-term outcomes appear unaffected. For long-term cognitive outcomes, we find that early-life pollution exposures negatively affect test scores and schooling. These long-term responses to early-life pollution exposures extend to the labor market with reduced hours worked and earnings. The implication is that a 25 per cent reduction in early-life ozone exposure would increase per person discounted lifetime earnings by $1,367, which would scale to $2.05 billion at the national level (or 2 per cent of 2005 GDP).

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:cup:endeec:v:26:y:2021:i:1:p:1-25_1

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