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Human Capital Growth and Poverty: Evidence from Ethiopia and Peru

Author

Listed:
  • Orazio Attanasio

    (University College London)

  • Costas Meghir

    (Yale University)

  • Emily Nix

    (Yale University)

  • Francesca Salvati

    (University College London)

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. (Copyright: Elsevier)

Suggested Citation

  • Orazio Attanasio & Costas Meghir & Emily Nix & Francesca Salvati, 2017. "Human Capital Growth and Poverty: Evidence from Ethiopia and Peru," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 25, pages 234-259, April.
    • Handle: RePEc:red:issued:16-113
    DOI: 10.1016/j.red.2017.02.002
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    More about this item

    Keywords

    Cognitive skills; Health; Dynamic factor analysis; Parental investments; Child development; Human capital;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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