Long Term Impact of Childhood Exposure to Pollution on Children’s Test Scores

Sajad Vahedi ()
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Sajad Vahedi: Arizona State University, IMPAQ International

Journal of Family and Economic Issues, 2020, vol. 41, issue 4, No 9, 729-748

Abstract: Abstract Recent studies examined relationships between childhood exposure to pollution and long-term outcomes, such as schooling. The literature, however, has yet to address the underlying mechanism of these relationships. In this study, I estimated a production function of skill formation for children aged 3 to 15 years old and simultaneously accounted for their exposure to pollution using a structural model. I used the Letter-Word (LW) test scores from the Panel Study of Income Dynamics, as a measure of children’s skills and ozone, as a measure of pollution. I found that a one standard deviation increase in ozone led to a 0.07 standard deviation reduction in the LW test scores on average. This negative effect varied with a child’s age: the LW test score of 3 year olds dropped by 0.10 standard deviation in response to one standard deviation increase in pollution levels, whereas for the 14 year olds this effect was about half as much, 0.04 standard deviation. I also found that households exhibited compensatory behavior and mitigated the negative effect of pollution by investing more in their children. I demonstrated that reduction of pollution levels or income transfers to families could remediate the negative impact of childhood exposure to pollution on adult outcomes.

Keywords: Environmental hazards; Child’s skill; Child development; Air pollution; Ozone (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s10834-020-09675-y

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