Presented by Dr Valentina Duque, Sydney University with Maria Rosales-Rueda and Fabio Sanchez.

Abstract

We explore how early-life shocks interact with subsequent human capital investments to influence children’s long-term outcomes. Using large-scale administrative data from Colombia, we combine a difference-in-difference framework with a regression discontinuity design to exploit two sources of exogenous variation: i) early-life exposure to adverse weather shocks that reduce children’s initial skills and ii), the introduction of conditional cash transfers (CCT) that promote investments in children’s health and education. We show that the timing and type of CCT-induced investments matter for both the effects of CCTs and their interactive effects with weather shocks. When the CCT-induced investments occur in sensitive periods of human capital formation (e.g., early childhood), the effects are large and their interactive effects with weather conditions suggest that the returns of the program are even larger for children exposed to “normal” weather conditions. In contrast, CCT-induced investments that come relatively late in childhood (e.g., adolescence), have a smaller “main” effect and a smaller or zero interactive effect with weather shocks. We also find that initial CCT-induced health investments tend to have larger returns than initial CCT-induced educational investments. These findings shed new light on the developmental production function for human capital and the role of social policies in closing gaps generated by early-life adversities.

Download research paper (PDF, 1.1 MB)

About the presenter’s visit

Dr Valentina Duque will be visiting the School of Economics on Thursday 18th April.  While here she will be using room 520A Colin Clark Building.  If you would like to meet with Dr Duque or have lunch or dinner with her please contact Dr Rigissa Megalokonomou who will be her host while at The University of Queensland. Dr Megalokonomou can be contacted on r.megalokonomou@uq.edu.au.

 

 

About Applied Economics Seminar Series

A seminar series designed specifically for applied economics researchers to network and collaborate.

Subscribe to UQ Economics seminar updates

Venue

Level 6, Colin Clark Building (#39)
UQ St Lucia campus
Room: 
Room 629 (Economics Boardroom)