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Human capital growth and poverty: Evidence from Ethiopia and Peru

Attanasio, O; Meghir, C; Nix, E; Salvati, F; (2017) Human capital growth and poverty: Evidence from Ethiopia and Peru. Review of Economic Dynamics , 25 pp. 234-259. 10.1016/j.red.2017.02.002. Green open access

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Abstract

In this paper we use high quality data from two developing countries, Ethiopia and Peru, to estimate the production functions of human capital from age 1 to age 15. We characterize the nature of persistence and dynamic complementarities between two components of human capital: health and cognition. We also explore the implications of different functional form assumptions for the production functions. We find that more able and higher income parents invest more, particularly at younger ages when investments have the greatest impacts. These differences in investments by parental income lead to large gaps in inequality by age 8 that persist through age 15.

Type: Article
Title: Human capital growth and poverty: Evidence from Ethiopia and Peru
Location: Chicago, IL
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.red.2017.02.002
Publisher version: https://doi.org/10.1016/j.red.2017.02.002
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Social Sciences, Economics, Business & Economics, Cognitive Skills, Health, Dynamic Factor Analysis, Parental Investments, Child Development, Human Capital, Noncognitive Skill Formation, Early-Childhood, Developing-Countries, Measurement Error, Children, Health, Intervention, Stimulation, Technology, Education
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/1571846
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