Adhvaryu, Achyuta.

Helping Children Catch Up: Early Life Shocks and the PROGRESA Experiment / Achyuta Adhvaryu, Anant Nyshadham, Teresa Molina, Jorge Tamayo. - Cambridge, Mass. National Bureau of Economic Research 2018. - 1 online resource: illustrations (black and white); - NBER working paper series no. w24848 . - Working Paper Series (National Bureau of Economic Research) no. w24848. .

July 2018.

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.




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