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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