IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/107168.html
   My bibliography  Save this paper

Would greater household wealth make young children smarter?

Author

Listed:
  • Pham, Thai Minh
  • Tran, Tuyen Quang

Abstract

Drawing on the Young Lives data obtained from three cycles of surveys from 2006 to 2016, our study examines factors affecting children’s cognitive ability in Vietnam. Controlling for the conditional wealth, which is the residual of the regression equation of the household wealth index in 2006 and 2013, our study provides evidence that conditional wealth has an effect of increasing the cognitive capacity of 15-year-old children, manifested in all three methods of measurement: by vocabulary points, math scores and reading comprehension scores in Vietnamese. This finding once again confirms that late intervention after the first 1,000 days has a positive impact on children's cognitive ability. Notably, our finding suggests that using the conditional wealth enables to capture the impact of economic shocks, which in turn have a significant effect on the cognitive ability of children in Vietnam.

Suggested Citation

  • Pham, Thai Minh & Tran, Tuyen Quang, 2021. "Would greater household wealth make young children smarter?," MPRA Paper 107168, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107168
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/107168/1/MPRA_paper_107168.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    2. Christina Paxson & Norbert Schady, 2007. "Cognitive Development among Young Children in Ecuador: The Roles of Wealth, Health, and Parenting," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    3. Almlund, Mathilde & Duckworth, Angela Lee & Heckman, James & Kautz, Tim, 2011. "Personality Psychology and Economics," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 1-181, Elsevier.
    4. Regina Fuchs & Elsie Pamuk & Wolfgang Lutz, 2010. "Education or wealth: which matters more for reducing child mortality in developing countries?," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 8(1), pages 175-199.
    5. Sepehri, Ardeshir & Guliani, Harminder, 2015. "Socioeconomic status and children's health: Evidence from a low-income country," Social Science & Medicine, Elsevier, vol. 130(C), pages 23-31.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    7. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May.
    8. Heather E. Joshi & Andrew McCulloch, 2002. "Child development and family resources: Evidence from the second generation of the 1958 British birth cohort," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(2), pages 283-304.
    Full references (including those not matched with items on IDEAS)

    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. Duc, Le Thuc, 2011. "Height and Cognitive Achievement of Vietnamese Children," World Development, Elsevier, vol. 39(12), pages 2211-2220.
    2. Jeffery, Karli & Chatterjee, Ishita & Lavin, Tina & Li, Ian W., 2020. "Young lives and wealthy minds: The nexus between household consumption capacity and childhood cognitive ability," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 89-104.
    3. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    4. Vogl, Tom S., 2014. "Height, skills, and labor market outcomes in Mexico," Journal of Development Economics, Elsevier, vol. 107(C), pages 84-96.
    5. Gustavo Yamada & Pablo Lavado & Ana Paula Franco & Emilia Abusada, 2016. "First impressions matter for life: the contribution of skills for the firt job," Working Papers 16-13, Centro de Investigación, Universidad del Pacífico.
    6. José Manuel Cordero Ferrera & Manuel Muñiz Pérez & Rosa Simancas Rodríguez, 2015. "The influence of socioeconomic factors on cognitive and non-cognitive educational outcomes," Investigaciones de Economía de la Educación volume 10, in: Marta Rahona López & Jennifer Graves (ed.), Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 21, pages 413-438, Asociación de Economía de la Educación.
    7. Ralph Hippe & Roger Fouquet, 2024. "The Human Capital Transition and the Role of Policy," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 411-457, Springer.
    8. Deniz Karaoglan & Serap Sagir & Meltem Dayioglu & Durdane Sirin Saracoglu, 2023. "The Impact of Maternal Education on Early Childhood Development: The Case of Turkey," Working Papers 2023-02, Gebze Technical University, Department of Economics.
    9. Majlesi, Kaveh, 2014. "Demand for Low-Skilled Labor and Parental Investment in Children's Education: Evidence from Mexico," Working Papers 2014:5, Lund University, Department of Economics.
    10. Islam, Gazi & Zyphur, Michael J. & Boje, David M., 2006. "Carnival and Spectacle in Krewe de Vieux and the Mystic Krewe of Spermes: The Mingling o Organization and Celebration," Insper Working Papers wpe_54, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    11. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2020. "Skills, signals, and employability: An experimental investigation," European Economic Review, Elsevier, vol. 123(C).
    12. Marta Rubio-Codina & Orazio P. Attanasio & Costas Meghir & Natalia Varela & Sally Grantham-McGregor, 2013. "The Socio-Economic Gradient of Child Development: Cross-Sectional Evidence from Children 6-42 Months In Bogota," IDB Publications (Working Papers) 85594, Inter-American Development Bank.
    13. Attanasio, Orazio & Blundell, Richard & Conti, Gabriella & Mason, Giacomo, 2020. "Inequality in socio-emotional skills: A cross-cohort comparison," Journal of Public Economics, Elsevier, vol. 191(C).
    14. Dozie Okoye, 2016. "Appropriate Technology And Income Differences," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(3), pages 955-996, August.
    15. Voxi Heinrich Amavilah & Antonio Rodríguez Andrés, 2024. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 110-143, March.
    16. Stadler, Manfred, 2015. "Innovation, industrial dynamics and economic growth," University of Tübingen Working Papers in Business and Economics 84, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    17. Łukasz Goczek & Ewa Witkowska & Bartosz Witkowski, 2021. "How Does Education Quality Affect Economic Growth?," Sustainability, MDPI, vol. 13(11), pages 1-22, June.
    18. Lopez, Ramon, 2009. "Natural disasters and the dynamics of intangible assets," Policy Research Working Paper Series 4874, The World Bank.
    19. Chaohai Shen & Tong Sheng & Xingheng Shi & Bingquan Fang & Xiaoqian Lu & Xiaolan Zhou, 2022. "The Relationship between Housing Price, Teacher Salary Improvement, and Sustainable Regional Economic Development," Land, MDPI, vol. 11(12), pages 1-21, December.
    20. Du, Juntao & Song, Malin & Xie, Bing, 2022. "Eliminating energy poverty in Chinese households: A cognitive capability framework," Renewable Energy, Elsevier, vol. 192(C), pages 373-384.

    More about this item

    Keywords

    household wealth; conditional wealth; cognitive skills; the gender gap;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D10 - Microeconomics - - Household Behavior - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D6 - Microeconomics - - Welfare Economics
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:107168. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.