| By: |
Pazos, Nicolas (University of Nottingham);
Favara, Marta (University of Oxford);
Sanchez, Alan (Group for the Analysis of Development (GRADE));
Scott, Douglas (University of Oxford);
Behrman, Jere R. (University of Pennsylvania) |
| Abstract: |
Global warming is changing precipitation patterns, harming communities
strongly tied to agricultural production, particularly in low-and-middle
income countries (LMICs). Whilst the long-term effects of being exposed to
rainfall shocks early in life on school achievement tests are
well-established, there is little population-based evidence from LMICs on the
mechanisms through which these shocks operate. This paper analyses the effects
of early exposure to rainfall shocks on four foundational cognitive skills
(FCSs), including executive functions (EF) that have been found to be key
predictors of educational success. These skills were measured via a series of
tablet-based tasks administered in Peru as part of the Young Lives
longitudinal study (YLS). We combine the YLS data with gridded data on monthly
precipitation to generate monthly, community-level rainfall estimates. The key
identification strategy relies on temporary climatic shocks being uncorrelated
with other latent determinants of FCS development. Our results show
significant negative effects of early life exposure to rainfall shocks on EF.
We also find evidence of rainfall shocks decreasing households' abilities to
invest in human capital, which may affect both FCS and domain-specific test
scores. Interestingly, social policies providing affected households with
additional resources partially offset the effects of the rainfall shocks. |
| Keywords: |
skills formation, human capital, rainfall, Peru, early childhood |
| JEL: |
J24 Q54 I24 I14 |
| Date: |
2023–02 |
| URL: |
http://d.repec.org/n?u=RePEc:iza:izadps:dp15940&r=lam |