ESSP Research Note 49: by Guush Berhane, Mehari Hiluf Abay and Tassew Woldehanna. Synopsis of Working Paper 73.
Abstract: Shocks in early childhood can have irreversible effects on long-term child welfare. A number of studies have investigated the effects of such shocks on child nutrition and health. However, evidence is scarce on the effects of shocks in early childhood on cognition, particularly when measured after the early childhood window during preschool and beyond. Given its history of recurring natural and economic shocks, Ethiopia presents a compelling context in which to seek a better understanding of the effects of shocks in early childhood on cognition. d-level panel data from rural areas of Ethiopia, we analyze effects of both economic and non-economic shocks on child cognition skills measured after the early childhood age window. We identify that drought, in particular, reduces child cognitive skills markedly. Food price inflation during the study period and divorce also have significant adverse effects on cognition. Promisingly, we find that the safety net program established by the Ethiopian government in 2005 to protect households from the economic effects of such shocks mitigated the reduction in cognitive skills associated with these shocks. Download the PDF.
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