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The Causal Effect of Public Policy and Income on Child Health and Human Capital

Objective

A recent literature in economics on the “fetal origins hypothesis” has documented that a range of early (prenatal and postnatal) shocks and interventions can have substantial effects on long-term human capital formation (e.g. adult health, wages). However, we still know little about the years in between early infancy and adulthood, referred to as the “missing middle”. How do early shocks affect health and human capital formation during childhood? How do the effects of different types of interventions, or shocks at different ages, compare? What are the most cost-effective ways of improving young children’s future outcomes?

I aim to fill this gap in the literature by taking advantage of a range of natural experiments in a country, Spain, for which high quality administrative data are available for the past 35 years. State of the art econometric techniques, combined with large sample sizes, will allow me to evaluate credibly and precisely the causal effects of a number of different public policies and shocks on child development.

I will consider five different “shocks” in early childhood (at different ages), affecting: i) Household material resources (an unconditional mother’s allowance); ii) Parental time (subsidized paternity leave); iii) Medical treatments around birth (elective delivery); iv) The availability of family planning services (access to abortion); and v) Aggregate demand shocks to different sectors of the economy.

I will evaluate their impact on health and cognitive development at ages 0-15, as measured in hospital and primary health care records, school grades, and standardized test scores, among other data sources. I will also study the potential channels linking treatments to child outcomes, including family size (fertility), parental time use and labor market outcomes, expenditure patterns, etc.

My results will help us understand how shocks in early life can have long-term effects on human capital, with direct policy implications.

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-COG - Consolidator Grant

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2017-COG

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Host institution

UNIVERSIDAD POMPEU FABRA
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 048 750,00
Address
PLACA DE LA MERCE, 10-12
08002 Barcelona
Spain

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Region
Este Cataluña Barcelona
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 048 750,00

Beneficiaries (1)

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