The Effect of Ecuador's 1999 Economic Crisis on Early Childhood Development

Melissa Hidrobo

Economic Development and Cultural Change, 2014, vol. 62, issue 4, 633 - 671

Abstract: In 1999 Ecuador experienced an economic crisis that was characterized by drastic increases in prices and the eventual adoption of the dollar as its currency. While many reports show that household consumption decreased and poverty increased, there are no studies on the impact of the crisis on early childhood development. This study uses data from 3 and 5 years after the crisis to investigate whether the 1999 crisis had a negative and persistent impact on child health and development. Using the variation in children's exposure to the crisis that is due to birth month, I find that one year of exposure significantly decreased height-for-age z-scores by .08 SD and vocabulary test scores by 4.9 points. In rural areas, children from farming households and those with more access to nutrition programs were more protected.

Date: 2014
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