Inter-generational Effects of Early Childhood Shocks on Human Capital: Evidence from Ethiopia
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In this paper I investigate the impacts of parental early childhood shocks on the human capital of children using various measures of health capabilities, schooling achievements, and standardized math and Peabody Picture Vocabulary Test (PPVT) test scores. I use parents' age during the 1983-85 Ethiopian famine, geographic variation of the famine, and the duration of exposure to identify effects. This paper uses the Ethiopia Young Lives panel survey of children who were tracked from the age of 6-18 months over an 11 year period. I find that children born to mothers who were exposed to the famine in their first 3 years have poor health endowments, lower schooling achievement and perform poorly in standardized tests.