IDEAS home Printed from https://ideas.repec.org/p/ags/yaleeg/107270.html
   My bibliography  Save this paper

Endowments and Investments within the Household: Evidence from Iodine Supplementation in Tanzania

Author

Listed:
  • Adhvaryu, Achyuta
  • Nyshadham, Anant

Abstract

Standard theories of resource allocation within the household posit that parents’ investments in their children reflect a combination of children’s endowments and parents’ preferences for child quality. We study how changes in children’s cognitive endowments affect the distribution of parental investments amongst siblings, using data from a large-scale iodine supplementation program in Tanzania. We find that parents strongly reinforce the higher cognitive endowments of children who received in utero iodine supplementation, by investing more in vaccinations and early life nutrition. The effect of siblings’ endowments on own investments depends on the extent to which quality across children is substitutable in parents’ utility functions. Neonatal investments, made before cognitive endowments become apparent to parents, are unaffected. Fertility is unaffected as well, suggesting that inframarginal quality improvements can spur investment responses even when the quantity-quality tradeoff is not readily observable.

Suggested Citation

  • Adhvaryu, Achyuta & Nyshadham, Anant, 2011. "Endowments and Investments within the Household: Evidence from Iodine Supplementation in Tanzania," Center Discussion Papers 107270, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:107270
    DOI: 10.22004/ag.econ.107270
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/107270/files/cdp998.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.107270?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mark R. Rosenzweig & Kenneth I. Wolpin, 1988. "Heterogeneity, Intrafamily Distribution, and Child Health," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 437-461.
    2. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2007. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 409-439.
    3. Douglas Almond & Lena Edlund & Mårten Palme, 2009. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1729-1772.
    4. Erica Field & Omar Robles & Maximo Torero, 2009. "Iodine Deficiency and Schooling Attainment in Tanzania," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 140-169, October.
    5. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
    6. David Cutler & Winnie Fung & Michael Kremer & Monica Singhal & Tom Vogl, 2010. "Early-Life Malaria Exposure and Adult Outcomes: Evidence from Malaria Eradication in India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 72-94, April.
    7. Ashlesha Datar & M. Kilburn & David Loughran, 2010. "Endowments and parental investments in infancy and early childhood," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 145-162, February.
    8. Pitt, Mark M & Rosenzweig, Mark R & Hassan, Md Nazmul, 1990. "Productivity, Health, and Inequality in the Intrahousehold Distribution of Food in Low-Income Countries," American Economic Review, American Economic Association, vol. 80(5), pages 1139-1156, December.
    9. Rosenzweig, Mark R & Schultz, T Paul, 1983. "Estimating a Household Production Function: Heterogeneity, the Demand for Health Inputs, and Their Effects on Birth Weight," Journal of Political Economy, University of Chicago Press, vol. 91(5), pages 723-746, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Douglas Almond & Bhashkar Mazumder, 2013. "Fetal Origins and Parental Responses," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 37-56, May.
    2. John Parman, "undated". "Childhood Health and Sibling Outcomes: The Shared Burden of the 1918 Influenza Pandemic," Working Papers 121, Department of Economics, College of William and Mary.
    3. John Parman, 2013. "Childhood Health and Sibling Outcomes: The Shared Burden and Benefit of the 1918 Influenza Pandemic," NBER Working Papers 19505, National Bureau of Economic Research, Inc.
    4. Bengtsson, Niklas & Peterson, Stefan & Sävje, Fredrik, 2013. "Revisiting the Educational Effects of Fetal Iodine Deficiency," Working Paper Series, Center for Labor Studies 2013:13, Uppsala University, Department of Economics.
    5. Bengtsson, Niklas & Petersen, Stefan & Sävje, Fredrik, 2013. "Revisiting the Educational E ects of Fetal Iodine De ciency," Working Paper Series 2013:21, Uppsala University, Department of Economics.
    6. Venkataramani, Atheendar S., 2012. "Early life exposure to malaria and cognition in adulthood: Evidence from Mexico," Journal of Health Economics, Elsevier, vol. 31(5), pages 767-780.
    7. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    8. Prashant Bharadwaj & Petter Lundborg & Dan-Olof Rooth, 2018. "Birth Weight in the Long Run," Journal of Human Resources, University of Wisconsin Press, vol. 53(1), pages 189-231.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    2. Brandon J. Restrepo, 2016. "Parental investment responses to a low birth weight outcome: who compensates and who reinforces?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 969-989, October.
    3. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    4. Schultz, T. Paul, 2010. "Population and Health Policies," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4785-4881, Elsevier.
    5. Ashlesha Datar & M. Rebecca Kilburn & David S Loughran, 2006. "Health Endowments and Parental Investments in Infancy and Early Childhood," Working Papers 367, RAND Corporation.
    6. Savelyev, Peter A. & Ward, Benjamin C. & Krueger, Robert F. & McGue, Matt, 2022. "Health endowments, schooling allocation in the family, and longevity: Evidence from US twins," Journal of Health Economics, Elsevier, vol. 81(C).
    7. David S Loughran & Ashlesha Datar & M. Rebecca Kilburn, 2008. "The Response of Household Parental Investment to Child Endowments," Working Papers WR-404-1, RAND Corporation.
    8. Lin, Ming-Jen & Liu, Elaine M., 2014. "Does in utero exposure to Illness matter? The 1918 influenza epidemic in Taiwan as a natural experiment," Journal of Health Economics, Elsevier, vol. 37(C), pages 152-163.
    9. Rosenzweig, Mark R. & Zhang, Junsen, 2013. "Economic growth, comparative advantage, and gender differences in schooling outcomes: Evidence from the birthweight differences of Chinese twins," Journal of Development Economics, Elsevier, vol. 104(C), pages 245-260.
    10. Pinka Chatterji & Dohyung Kim & Kajal Lahiri, 2014. "Birth Weight And Academic Achievement In Childhood," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1013-1035, September.
    11. Ashlesha Datar & M. Rebecca Kilburn & David S Loughran, 2006. "Health Endowments and Parental Investments in Infancy and Early Childhood," Working Papers WR-367, RAND Corporation.
    12. Huang, Wei & Liu, Hong, 2023. "Early childhood exposure to health insurance and adolescent outcomes: Evidence from rural China," Journal of Development Economics, Elsevier, vol. 160(C).
    13. Emilia Del Bono & John Ermisch & Marco Francesconi, 2012. "Intrafamily Resource Allocations: A Dynamic Structural Model of Birth Weight," Journal of Labor Economics, University of Chicago Press, vol. 30(3), pages 657-706.
    14. Douglas Almond & Bhashkar Mazumder, 2013. "Fetal Origins and Parental Responses," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 37-56, May.
    15. Nicoletti, Cheti & Tonei, Valentina, 2017. "The Response of Parental Time Investments to the Child's Skills and Health," IZA Discussion Papers 10993, Institute of Labor Economics (IZA).
    16. Victor Lavy & Analia Schlosser & Adi Shany, 2016. "Out of Africa: Human Capital Consequences of In Utero Conditions," NBER Working Papers 21894, National Bureau of Economic Research, Inc.
    17. Juho Härkönen & Hande Kaymakçalan & Pirjo Mäki & Anja Taanila, 2012. "Prenatal Health, Educational Attainment, and Intergenerational Inequality: The Northern Finland Birth Cohort 1966 Study," Demography, Springer;Population Association of America (PAA), vol. 49(2), pages 525-552, May.
    18. Janet Currie & Tom Vogl, 2013. "Early-Life Health and Adult Circumstance in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 1-36, May.
    19. Michele Giannola, 2024. "Parental Investments and Intra-household Inequality in Child Human Capital: Evidence from a Survey Experiment," The Economic Journal, Royal Economic Society, vol. 134(658), pages 671-727.
    20. Alzúa, María Laura & Katzkowicz, Noemí, 2021. "Pay for performance for prenatal care and newborn health: Evidence from a developing country," World Development, Elsevier, vol. 141(C).

    More about this item

    Keywords

    Food Consumption/Nutrition/Food Safety; Health Economics and Policy; International Development; Labor and Human Capital;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:yaleeg:107270. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/egyalus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.