Do Different Types of Assets Have Differential Effects on Child Education?: Evidence from Tanzania

To assess the conventional view that assets uniformly improve childhood development through wealth effects, this paper tests whether different types of assets have different effects on child education. The analysis indicates that household durables and housing quality have the expected positive effects, but agricultural assets have adverse effects on highest grade completed and no effects on exam performance. Extending the standard agricultural-household model by explicitly including child labor, the study uses three waves of panel data from Tanzania to estimate the effects of household assets on child education. The analysis corrects for the endogeneity of assets and uses a Hausman-Taylor instrumental variable panel data estimator to identify the effects of time-invariant observables and more efficiently control for time-invariant unobservables. The negative effect of agricultural assets is more pronounced among rural children and children from farming households, presumably due to the higher opportunity cost of their schooling.

Does affirmative action in Chinese college admissions lead to mismatch? Educational quality and the relative returns to a baccalaureate degree for minorities in China

This paper provides a unique illustration of the benefits of affirmative action in higher educaiton. It focuses on China in the early 21^st Century to gauge the impacts of advantges afforded to ethnic minority group members in admissions to colleges and univerities. It specifically addresses a variant of the mismatch hypothesis that alleges that minority students sorted into higher ranked universities are worse off than equallty qualified minorities attending lower-ranked universities. In particular, we examine the expected earnings of minorities vs non-minorities attending elite vs less selective colleges and universities in China. The paper utilizes data from the 2002 Chinese Household Income Project to estimate the labor market return to graduating from college relative to high school to assess the impact of post-reform affirmative action in college/univerity admissions in China. Parameter estimates of heterogeneous treatment effects reveal that for minorities, the average treatment effect of earning a baccalaureate degree from colleges/universities ranked good and very good is high relative to the Han majority, and for those actually receiving the treatment from colleges/universities ranked good, and would be positive for those who could have earned a baccalaureate degree from colleges/universities ranked good and very good, but did not. Our results suggest that post-reform affirmative action education policies in China have been effective at improving the education and labor market outcomes of minorities, and that existing minority-Han disparities can be eliminated, and Chinese economic growth can be enhanced, by further expanding the pipeline of minorities that complete high school and enter into colleges/universities that grant baccalaureate degrees. Our findings suggest that the mismatch hypothesis cannot be viewed as a universal phenomenon that renders affirmative action in college/university admissions an ineffective policy tool to redress/remedy historic discrimination against minority groups.

The Agricultural Origins of Time Preference<sup/>

This research explores the origins of observed differences in time preference across countries and regions. Exploiting a natural experiment associated with the expansion of suitable crops for cultivation in the course of the Columbian Exchange, the research establishes that pre-industrial agro-climatic characteristics that were conducive to higher return to agricultural investment, triggered selection, adaptation and learning processes that generated a persistent positive effect on the prevalence of long-term orientation in the contemporary era. Furthermore, the research establishes that these agro-climatic characteristics have had a culturally embodied impact on economic behavior such as technological adoption, education, saving, and smoking.

Human Capital and the Wealth of Nations†

We reevaluate the role of human capital in determining the wealth of nations. We use standard human capital theory to estimate stocks of human capital and allow the quality of human capital to vary across countries. Our model can explain differences in schooling and earnings profiles and, consequently, estimates of Mincerian rates of return across countries. We find that effective human capital per worker varies substantially across countries. Cross-country differences in Total Factor Productivity (TFP) are significantly smaller than found in previous studies. Our model implies that output per worker is highly responsive to changes in TFP and demographic variables.

The long-term cognitive consequences of early childhood malnutrition: the case of famine in Ghana

We examine the role of early childhood health in human capital accumulation. Using a unique data set from Ghana with comprehensive information on individual, family, community, school quality characteristics and a direct measure of intelligence together with test scores, we examine the long-term cognitive effects of the 1983 famine on survivors. We show that differences in intelligence test scores can be robustly explained by the differential impact of the famine in different parts of the country and the impacts are most severe for children under two years of age during the famine. We also account for model uncertainty by using Bayesian Model Averaging.