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The Role of Risk and Ambiguity Preferences on Early-Childhood Investment: Evidence from Rural India

Michael Cuna, Lenka Fiala, Min Sok Lee, John List and Sutanuka Roy

Artefactual Field Experiments from The Field Experiments Website

Abstract: This study examines how mothers' risk and ambiguity preferences affect early childhood investments and outcomes by assessing over 6,000 mothers in Rajasthan, India. Results show that more risk and ambiguity averse mothers make greater investments in their children's nutrition between ages 0-6. These investments correlate with superior cognitive and non-cognitive skills in children, even after controlling for socioeconomic factors. Notably, higher maternal risk and ambiguity aversion can mitigate negative impacts of socioeconomic disadvantages (maternal illiteracy, belonging to historically discriminated groups, limited media access) on all measures of early-life skills, highlighting the importance of understanding preferences in addressing inequities.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:feb:artefa:00810

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