| 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. |