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This study aims to analyze the effect of prenatal exposure to certain nutritional disruptions in utero on human capital formation. In order to resolve the endogeneity driven by maternal dietary deficiencies, we use the Islamic holy month of Ramadan, during which observers abstain from eating and drinking entirely from sunrise to sunset, as a natural experiment to assess the effects of fetal malnourishment on educational and labor market outcomes. We compare schooling and employment measures of individuals who are prenatally exposed to Ramadan with those who are not using the 2016 round of the Turkish Family Structure Survey dataset. Our results indicate that men who are exposed to Ramadan in utero in the first or third trimester complete 0.53 fewer years of schooling and are less likely to obtain middle school, high school, and college degrees. These effects are stronger when Ramadan coincides with summer. [ABSTRACT FROM AUTHOR]

This paper analyzes the impact of comprehensive and universal early childhood development programs on educational outcomes during middle childhood. I exploit the birth eligibility cutoff of a pioneer intervention of this type in Chile and use administrative data on grade point averages and standardized test scores. Program exposure raises standardized math scores by 1.8% of a standard deviation, standardized reading scores by 4.0% of a standard deviation, and grade point averages by 0.03% of a standard deviation. I find that socioeconomically vulnerable children benefit less from program exposure. The educational marginal value of public funds indicates that the program is beneficial overall and pays for itself. [ABSTRACT FROM AUTHOR]

We study the impact of an extension of paid family leave in the Czech Republic from 3 to 4 years on children's long-term outcomes. We find that an additional year of maternal care at age 3 has an adverse effect on children's human capital investments and labor market attachment. Affected children are 6 percentage points less likely to be enrolled in college and 4 percentage points more likely to be not in education, employment, or training (NEET) at age 21–22. While the negative impact on education is persistent, with an 8 percentage points lower probability of completing college by the age of 27, the effect on NEET is short-lived. The results are driven by children of low-educated mothers, whose education and NEET outcomes are affected by as much as 12 percentage points. Our findings are consistent with previously documented positive effects of universal childcare on child long-term outcomes and with the fact that the extended maternal care induced by the extension of family leave led to a postponement of public kindergarten enrollment. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of early-life exposure to persecution risk on human capital formation and marital sorting, while also analyzing how these effects are influenced by the timing of the exposure during early life. Utilizing the context of China’s “class struggle” period, which targeted various classes including landlords, capitalists, and intellectuals, this study demonstrates that individuals who experienced persecution risk during their childhood exhibit lower formal education attainment, reduced cognitive skills, and lower earnings. They are more likely to form marriages with individuals from classes that were previously favored by the regime but have comparatively lower human capital outcomes. Moreover, the study highlights that the most substantial and enduring impacts occur when the exposure to class struggle persecution risk takes place during early childhood. [ABSTRACT FROM AUTHOR]

Our work sheds light on the joint role of human capital and geography during the early stages of the transition from stagnation to growth in early twentieth century Greece. We uncover a robust association between geography and literacy. We also show that geography is correlated with land inequality and thus establish that land distribution is a channel through which geography influences literacy. Finally, the impact of geography on human capital formation weakens with industrialization. Our work contributes to the literature on geography and human capital in the transition from stagnation to growth since Greece was at the early stages of the industrial era during the study period. [ABSTRACT FROM AUTHOR]

This paper evaluates the causal effects of mother's and father's education on child-health outcomes in Zimbabwe, exploiting the exogenous variation generated by the 1980 education reform. We use four waves of Demographic and Health Surveys for Zimbabwe and estimate a simultaneous-equation model to take into account possible selection into co-residence between parents and children, endogeneity biases, and parental education sorting. Our results suggest that father's education affects the health outcomes of under-5 children and matters more than that of the mother. These results continue to hold in a number of robustness checks. Moreover, while there is selection into co-residence with the child, this does not affect the causal effect of education on child health. Last, parental educational sorting is also shown to be important. Our findings suggest that not taking the education of both parents into account simultaneously may yield misleading conclusions. [ABSTRACT FROM AUTHOR]

Peacetime military service has both positive and negative effects on human capital. While it depreciates academic skills, it also enhances non-cognitive ones. The net effect of conscription is hard to identify due to issues of self-selection, endogenous timing and omitted variables bias. We exploit the compulsory service of men in the Republic of Cyprus preceding university enrolment to deal with the first two problems. After controlling for prior academic performance and other relevant controls in a selection on observables model, we find that duration of service has a positive and significant effect on men's subsequent academic performance as measured by grade point average. Two exogenous reforms—one at the extensive margin and one at the intensive margin of military service—allow us to deal with omitted variables bias. We estimate difference-in-differences models, where female students act as a control group, and show that an increase (reduction) in the average length of army service has a positive (negative) and significant effect on men's academic performance. [ABSTRACT FROM AUTHOR]

We present a growth model whose novelty is to explicitly account for the direct, preference-related factors that reinforce the delay in the timing of childbearing. Given the strength of these factors, the model generates the empirically observed dynamics in completed cohort fertility. Furthermore, the quantitative analysis of our results verifies that our model provides a good fit for actual data of the rebound of the completed cohort fertility rates in Nordic countries. The fact that these countries are widely considered as the most progressive ones, in terms of their cultural norms and in terms of their family-oriented policies, offers credence to the hypothesis that our model advances. More generally, our framework provides a platform for research that can uncover empirically relevant, but yet unexplored, mechanisms in the joint analysis of demographic change and economic growth. [ABSTRACT FROM AUTHOR]

We investigate the impact of son preference in India on gender inequalities in education. We distinguish the impact of preferential treatment of boys from the impact of gender-biased fertility strategies (gender-specific fertility stopping rules and sex-selective abortions). Results show strong impacts of gender-biased fertility strategies on education inequalities between girls and boys. Preferential treatment of boys also matters but appears to have a more limited impact for most outcomes. Further, our results suggest that gender-biased fertility strategies create gender inequalities in education both because girls and boys end up in systematically different families and because of gender inequalities in pecuniary investment within families. Since gender inequalities in education in India are partially the result of gender-biased fertility strategies, they are not likely to disappear until the strong desire to have a son does so. [ABSTRACT FROM AUTHOR]

Using panel data from India, this paper investigates the effect of early maternal age on offspring human capital, contributing to the scarce evidence on this phenomenon, especially in the context of a developing country. The analysis relies on mother fixed effects to allow for unobserved differences between mothers and employs a variety of empirical strategies to address remaining sibling-specific concerns. Our results indicate that children born to young mothers are shorter for their age, with stronger effects for girls born to very young mothers. We also find some evidence suggesting that children born to very young mothers perform worse in math. By exploring the evolution of effects over time for the first time in the literature, we find that the height effect weakens as children age. Further analysis suggests both biological and behavioral factors as transmission channels. [ABSTRACT FROM AUTHOR]

We paint a detailed picture of whether the trade-off between human capital and fertility decisions was shaped in a pre-industrial society during the Qing dynasty. Using data from the China Multi-Generational Panel Dataset-Liaoning (CMGPD-LN), we investigate 16,328 adult males born between 1760 and 1880 in Northeast China. We control for birth-order effects and for a rich set of individual-, parental-, household-, and village-level characteristics in regression analyses on individuals from different household categories (elite vs. non-elite households). Our findings suggest that sibship size, as instrumented by twins at last birth, starts to have a substantial negative effect on the probability of receiving an education, indicating the emergence of a child quantity-quality trade-off for large parts of the population belonging to the Eight Banner System in Liaoning around the mid-Qing dynasty. Our results provide supportive evidence for the unified growth theory, showing that the decreased fertility rates in pre-transition China could be a result of rational behaviors perpetuated by households in response to higher educational returns and accessibility. [ABSTRACT FROM AUTHOR]

As a result of the GI Bill, returning World War II veterans were generally highly educated, but their locations following the war were highly uneven across cities in the USA. Exploiting the spatial variation in these returning veterans driven by prewar communities of veterans, I study the long-run persistence of an increase in local human capital. While there is strong persistence in skills across cities, this shock produced a large and uneven increase in local skills after the war. Furthermore, this positive shock had long-lasting effects on local human capital from 1940 to 2010. [ABSTRACT FROM AUTHOR]

Around 1 in 5 individuals in OECD countries leave school without basic qualifications, impacting their own later life outcomes and those of their children. We document the impact of a compulsory schooling reform in England, which raised the education of the marginal mother from leaving school with no qualifications to having at least a basic level of qualifications, on their children's cognitive and socio-emotional outcomes in childhood. We further estimate the causal effect of this reform on a range of parental inputs, which we show are associated with children's human capital development. Our results suggest that family resources and parental investments, including health behaviours during pregnancy and monetary investments at home, are causally impacted by the educational reform and, when coupled with their association with human capital, can each explain between 12 and 60% of the effect of the reform on the second generation's skills. [ABSTRACT FROM AUTHOR]

This research explores theoretically, empirically, and quantitatively the role of age diversity in determining aggregate productivity and output. Age diversity has two conflicting effects on output. On the one hand, due to the complementarity between education and experience, age diversity may be beneficial. On the other hand, rapid skill-biased technological change makes age diversity costly as up-to-date education tends to be concentrated among younger cohorts. To study this trade-off, I first build an overlapping-generations (OLG) model which, in view of these two opposing forces, predicts a hump-shaped relationship between age diversity and GDP per capita. This prediction is established analytically, and also quantitatively using real-world population data in an extended computational version of the model. The prediction is then tested using country-level panel data with a novel instrument and regional data from Europe. Moving one standard deviation closer to the optimal level of age diversity is associated with a 1.5% increase in GDP per capita. [ABSTRACT FROM AUTHOR]

This paper contributes to the debate on institutions and economic development by assessing the relationship between landownership concentration and education. Using historical data at both the district and province levels in post-unification Italy from 1871 to 1921, I find evidence of an adverse effect of land inequality on literacy rates. Instrumental variable estimates using malaria pervasiveness as a source of exogenous variation rule out concerns regarding potential endogeneity. Exploration of the panel dimension of the data reveals that several shocks during this period affected the relationship between land inequality and literacy rates. In addition, this paper provides insights into the mechanism behind this relationship by analyzing the impact on intermediate outputs, such as enrollment rates in primary school, child-teacher ratio, school density, child labor, and municipality expenditures. Land inequality may have adversely affected literacy rates not only by influencing schooling supply through the political process but also through the private demand for education. [ABSTRACT FROM AUTHOR]

Many previous studies have shown that skilled and educated women have fewer children. By comparing twins and close siblings in Swedish register data, we show that the negative association between human capital and fertility mostly reflects family background factors. For males, human capital measures are unrelated to fertility in the overall population, but this again masks the influence of family background factors as high-skilled males tend to have more children than their less-skilled twins or siblings. Hence, family background factors have a strong negative impact on the overall association between human capital measures and fertility for both women and men. Non-cognitive abilities deviate from these patterns—these abilities remain strongly complementary to fertility both within and across families. Our results can be reconciled with a stylized model where family-specific preferences for fertility are shared across generations and shape investments in skills and traits when children are young. [ABSTRACT FROM AUTHOR]

Hyperbolic utility discounting has emerged as a leading alternative to exponential discounting because it can explain time-inconsistent behaviors. Intuitively, hyperbolic discounting should play a crucial role in intergenerational models characterized by intertemporal trade-offs. In this paper, we incorporate hyperbolic discounting into a dynamic model in which parents are altruistic towards their children. Agents live for four periods and choose levels of consumption, fertility, investment in their children's human capital, and bequests to maximize discounted utility. In the steady state, hyperbolic discounting decreases fertility, increases human capital investment, and shifts consumption towards younger ages. These effects are more pronounced in the time-consistent problem (in which agents cannot commit to a course of action) than in the commitment problem, which can be interpreted as realized and intended actions, respectively. The preference-based discrepancy between intended fertility and realized fertility has important implications for the empirical literature that compares the two. [ABSTRACT FROM AUTHOR]

We document and analyse the wage gap between vocational and general secondary education in Portugal between 1994 and 2013. As Portuguese workers have been educated in different school systems, we have to distinguish between birth cohorts. Analysing the wage gaps within cohorts, we find no support for either the human capital prediction of crossing wage profiles or the hypothesis that general graduates increasingly outperform vocational graduates in late career. We discover that the lifecycle wage profiles have shifted over time. We link the pattern of shifting cohort profiles to changes in the school system and in the structure of labour demand. We conclude that assessing the relative value of vocational education requires assessing how the vocational curriculum responds to changes in economic structure and technology. We show that the decline in assortative matching between workers and firms has benefited vocationally educated workers. [ABSTRACT FROM AUTHOR]

This research argues that, in the presence of idiosyncratic ability shocks after childbirth, irreversible fertility decisions distort the resource allocation between the quantity and quality of children. In underdeveloped environments, where family size is locked into large levels, education investment places a heavy financial burden on households, which deprives some competent children of learning opportunities. In contrast, in more developed environments, family size is locked into smaller levels, which facilitates education investment even for some children with low aptitude. A redistributive policy to mitigate the distortion is proposed for each stage. [ABSTRACT FROM AUTHOR]

This paper studies occupational selection among generations of immigrants in the USA and links their choices to the occupational wage distribution in their country of origin. The empirical results suggest that individuals are more likely to take up an occupation in the USA that was more lucrative in the origin country, conditional on individual demographic characteristics, parental human capital, and ethnic networks. However, the importance of the origin wage declines with the length of time that immigrants spend in the USA and over generations. Information frictions may be an explanation. [ABSTRACT FROM AUTHOR]