Helping Children Catch Up: Early Life Shocks and the PROGRESA Experiment
Achyuta Adhvaryu (),
Teresa Molina and
No 24848, NBER Working Papers from National Bureau of Economic Research, Inc
Can investing in children who faced adverse events in early childhood help them catch up? We answer this question using two orthogonal sources of variation – resource availability at birth (local rainfall) and cash incentives for school enrollment – to identify the interaction between early endowments and investments in children. We find that adverse rainfall in the year of birth decreases grade attainment, post-secondary enrollment, and employment outcomes. But children whose families were randomized to receive conditional cash transfers experienced a much smaller decline: each additional year of program exposure during childhood mitigated more than 20 percent of early disadvantage.
JEL-codes: I15 I25 O12 (search for similar items in EconPapers)
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