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Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University Adi Shany Hebrew University November 2014

Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

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Page 1: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Out of Africa: Human Capital Consequences of In Utero Conditions

Victor Lavy University of Warwick and Hebrew University

Analia SchlosserTel Aviv University

Adi ShanyHebrew University

November 2014

Page 2: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Some Salient Facts About Micronutrient Deficiencies

During Pregnancy in Developing Countries

Page 3: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Iron Deficiency

• Half of pregnant women in developing countries are anemic (WHO

2014).

• More than half of this anemia burden is due to Iron deficiency, the

rest partly due to deficiency of folic acid, vitamin B12, vitamin A,

and due to parasitic infections.

• Health consequences include poor pregnancy outcome, in

particular impaired physical, brain and cognitive development.

• If iron supplementation starts after the first trimester of pregnancy it

will not help prevent these poor birth outcomes.

Page 4: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Folic Acid Deficiency • Recent review by WHO suggest that deficiencies of folic acid is a

public health problem that affect many millions of people throughout

the developing world.

• Folic acid deficiency in early pregnancy increases dramatically the

chance of a spinal cord problem (Neural Tube Defect) or brain

development problems. A NTD is an opening in the spinal cord or

brain that occurs very early in gestation.

• Therefore FEolic acid supplement (folate) is advised for at least the first

12 weeks of pregnancy for all women - even if they are healthy and

have a good diet. If Folic acid supplementation starts after the first

trimester of pregnancy it will not help prevent these poor birth

outcomes.

Page 5: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Iodine Deficiency (IDD) • IDD during pregnancy is world’s most prevalent cause of brain damage (WHO

2014). Thought to Matter most at time of fetal brain development.

• It is estimated that 1 billion people are at risk of brain damage from IDD worldwide.

• Comprehensive Handbook of Iodine (2009):

“Iodine deficiency is now recognized by WHO as the most common preventable cause of brain damage in the world today, with excess of 2 billion at risk from 130 counties.”

• Iodine deficiency reduces intellectual capacity and cognitive development, with

larger effect on girls. • “Humans require iodine for biosynthesis of thyroid hormone. In utero

development of the central nervous system required for intellectual functioning depends critically on adequate supply of thyroid hormone, which influences the density of neural networks established in the developing of the brain” (Bror-Axel Lamberg 1991)..

Page 6: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Micronutrient Deficiencies in India

• The prevalence of micronutrient deficiencies amongst pregnant women of New Delhi slum communities is high (Umesh et al, Indian Pediatrics 1999; 36: 991-998). Prevalence of anemia and Iodine deficiency was 78.8% and 22.9%, respectively.

• A 2000-2001 survey in a sample of rural villages in Haryana State show that 73.4, 26.3, and 6.4 percent of pregnant women were deficient in iron, folic acid and iodine, respectively (Pathak et al, Indian J Pediatrics. 2004 Nov).

• Padam Singh (2007): over all anemia among pregnant women in India is 85%.

Page 7: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Rresearch Question

• What will be the human capital and economic consequences of

eliminating these Micronutrient Deficiencies among pregnant

women, for example, bringing them to the level in developed

countries?

• More general question, how would improvement of in utero

environmental conditions affect later life cognitive and human

capital outcomes?

• The challenge: Identify the casual effect of in utero conditions

where children’s family background correlate with in utero

conditions.

Page 8: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Literature• Medical

• The fetal origin hypothesis (Braker 1992): certain chronic conditions

later in life can be traced to the course of fetal development.

• Evidence on the effect of malnutrition during pregnancy:

• Dutch famine - Neugebauer et al. (1999), Rooij et al. (2010) - severe

maternal nutritional deficiency early in gestation is associated with

inferior brain and cognitive development of off-springs.

• Evidence on effect of radiation exposure:

• Relatively short pulse of exposure to radioactive fallout between 8

and 25 weeks of gestation has long term impact on cognitive abilities

of off-springs later in life. This is plausible given the nature of the

developmental events occurring in the brain during this period of

gestation (Nowakowski and Hayes (2008)).

Page 9: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Literature• Economic

• Studies that use changes in local environment caused by negative in utero

shocks and look at effect on health and education outcomes (review by Almond

and Currie, 2011)

• Radiation shock (Almond et al. 2009 Chernobyl), Nutrition shocks (Almond et

al. 2007 china famine),

• Economic shocks (Banerjee et al. 2010 19th century blight in French vineyards,

Baten et al. food prices in Britain 18th century). Variation in infectious disease

(Almond 2006 Influenza, Barreca 2009 malaria)

• Positive and policy driven events in early childhood:

• Food stamps program in USA that increasing family resources ((Hoynes et al.

2012) leads to reduction in incidence of obesity, high blood pressure, heart

disease, diabetes, as well as an increase in reporting to be in good health.

• Migration to Sweden (Van Den Berg et al. 2012) at early childhood leads to

improved outcomes at adulthood.

Page 10: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Literature

• Economic

• Field et al "Iodine Deficiency and Schooling Attainment in Tanzania." AEJ Applied (2009).

“Our findings suggest a large effect of in utero iodine on cognition and

human capital: treated children attain an estimated 0.35-0.56 years of

additional schooling relative to siblings and older and younger peers.

Furthermore, the effect appears to be substantially larger for girls,

consistent with laboratory evidence indicating greater cognitive

sensitivity of female fetuses to maternal thyroid deprivation.”

Page 11: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

In This Research Project

We use the immigration from a poor African country (Ethiopia) to a developed economy (Israel) in May 1991:

• Quasi-experimental variation• Immigration was unexpected, in a short time and not self selected• Random variation in the timing of pregnancy and birth

• Different environmental conditions during pregnancy

• Pregnant women experienced different environmental conditions because of immigration, especially in terms of micronutrient deficiencies.

• Natural Regression discontinuity Design

• Comparing cognitive and high school achievements of children who faced dramatic differences in prenatal conditions in utero based on their gestational age upon arrival to Israel in May 1991.

Page 12: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Unique in this Study

• Using unique identification based on a positive event of environmental differences caused by immigration.

• Investigating the effects of environmental conditions in utero in different stages of pregnancy on cognitive outcomes.

• Policy implications for developed and developing countries.

• Understanding of intergenerational effects of immigration

Page 13: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

The immigration from Ethiopia to Israel

• In 1975 the Ethiopian Jews were recognized as Jewish by the state of Israel and allowed to immigrate to Israel under the Law of Return.

Page 14: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

The immigration from Ethiopia to Israel

• “Operation Moses” - 6,000 immigrant airlifted from Sudan secretly between end of 1984 and 1985.

Page 15: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

The immigration from Ethiopia to Israel

• "Operation Solomon" - On May 24th 1991 the Israeli government

brought to Israel more than 14,000 Ethiopians Jews within 36 hours.

Page 16: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

“Operation Solomon” – May 24th 1991

Page 17: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Why is it Natural Experiment?

• Unexpected • Organized by the Israeli government as a rescue operation following

unstable political situation in Ethiopia

• Completed in short time • Airlift by Israeli aircrafts within 36 hours

• Not self selected• Included almost all the Jews living in Ethiopia

The quasi-experimental variation properties:The timing of immigration uncorrelated with the timing of

the pregnancy and birth The decision to immigrate uncorrelated with unobserved

factors like family background

Page 18: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Analysis Sample

Students born in Israel between June 1991 and February

1992 to mothers who immigrated to Israel in "Operation

Solomon“:

• Their pregnancy incepted in Ethiopia but they were born in Israel

• Experienced the same conditions at birth and at later life

• Faced dramatic differences in prenatal conditions in utero based on their gestational age upon arrival to Israel in May 1991

Page 19: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Analysis Sample

The birth distribution of all the "Operation Solomon" offspring:

Page 20: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Large environmental differences between Ethiopia and Israel that may have affected pregnant mothers

• Micro Nutrient Supplements:• Ethiopia: No vitamins consumption (less then 1% of pregnant women age

15-49 took iron supplements for 90+ days – DHS 2011).• Israel: use of vitamins during pregnancy, mainly iron and Folid Acid

(Granot et al. (1996)).• Iodine: Ethiopia remains severely iodine deficient. Children in Northern

Ethiopia are Iodine Deficient (Girma et al. 2014). Iodine level in Israel is adequate.

• Health Care and Pregnancy Monitoring:• Ethiopia: Little or no medical care during pregnancy. In Israel: modern

health care and medicine, regular monitoring.

• Leaving Conditions and Nutrition• Income per capita in Israel 60 times higher, nutritional level and quality in

Israel better than in Ethiopia. Probably not much difference in short term.

Page 21: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Environmental Differences

Source Ethiopia Israel Indicator

Israel (CBS 1993)Ethiopia (IFPRI 1993)

1,516 3,089 Calorie Supply Per Capita

The world bank (1990/1) 120 10 Mortality rate, infant (per 1,000 live births)

The world bank (1990/1) 202 12 Mortality rate, under-5 (per 1,000 live births)

The world bank (2000/1) 15 8 Low birth-weight babies (% of births)

The world bank (2000) 27 100 Pregnant women receiving prenatal care (%)

Page 22: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Data

Israeli Ministry of Education Database 2007-2011:

• Students administrative records

• Birth date, Own and parental country of origin, Immigration date.

• Family characteristics – parents schooling, number of siblings.

• High School data

• Completion of 12th grade.

• Obtaining matriculation certificate by age 18.

• matriculation certificate is required for admission for academic post secondary schooling and for some jobs.

• Credit units of matriculation exams.

• Measure the quality of the matriculation program.

• Units in English and math, measures of inetability

Page 23: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Background Characteristics by Treatmetment

First Trimester Second

Trimester

Third

Trimester

Mother's age at birth 30.76 30.91 30.59(9.281) (8.516) (8.788)

Parents's age gap 10.49 11.29 11.11(7.143) (7.749) (6.987)

Birth order 2.789 2.703 2.866(1.966) (1.883) (1.895)

Father's years of schooling 2.183 2.415 1.838(3.675) (4.079) (3.552)

Mother's years of schooling 1.972 2.415 2.317(3.539) (3.906) (3.823)

Page 24: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Definition of Treatment

1. Treatment Definition by Trimester• First trimester constitute the most critical time for negative effects of

deficiencies in micro nutrients and iodine. Evidence from effect of famine on cognitive abilities later in life (Von Hinke Kessler Scholder et al. (2014), Neugebauer et al. (1999), Rooij et al. (2010)).

2. Treatment Definition by the critical period for fetus brain Development:• Week 8 to week 25 is viewed as the critical period of pregnancy for fetus

brain and cognitive development (Nowakowski and Hayes (2008), Loganovskaja and Loganovsky (1999). E.X. damage caused by radiation to human fetus in this period can result in cognitive deficits that still manifest 16-18 years after birth it is the major neuron genetic period of the developing human neocortex.

The key variable: The gestational age of the student at immigration (measured by weeks)

Page 25: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Balancing Tests

Testing the correlation between observable characteristics and timing of pregnancy based treatment definition by Trimesters:

Treatment Period

Mother age at birth

Parents age gap

Number of

sibiling

Birth order

Indictor for

twins

Mother schooling

trimester_1 0.165 -0.628 0.000-0.078-0.079 0.006 -0.454 0.239 -0.020(0.776) (0.690) (0.246)(0.164)(0.197) (0.033) (0.384) (0.325) (0.055)

trimester_2 0.323 0.192 -0.016-0.159-0.162 -0.017 -0.048 0.438 0.020(0.826) (0.674) (0.205)(0.213)(0.206) (0.027) (0.381) (0.295) (0.051)

Observations 624 624 624 2473624 624 624 624 572

Father schooling

SES of first

locality of

Page 26: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Mean Outcomes by Treatment First Trimester Second Trimester Third Trimester

Birth weight 3076.0 3087.4 3021.4(491.2) (487.2) (468.8)

Did not repeat 6th-12th grade 0.829 0.809 0.754(0.377) (0.394) (0.432)

Matriculation diploma 0.346 0.199 0.197(0.477) (0.400) (0.399)

Matriculation units 12.91 12.26 8.972(11.35) (11.38) (10.15)

Math units 1.476 1.347 0.915(1.538) (1.549) (1.355)

English units 2.224 2.025 1.620(1.900) (1.899) (1.817)

Math 5 units 0.0163 0.0127 0(0.127) (0.112) (0)

Page 27: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

The Baseline Model• Treatment definition by trimesters:

(1)

• - Student school outcome

• - Vector of student characteristic

• The omitted category is Third trimester

• Treatment definition by weeks:

(1)

We expect that

• Shortcomings:• Not include cohort and month of birth effects.• Estimates may be confounded by unobserved cohort effects or substantial

seasonality in school performance by month of birth.

Page 28: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Controlling for Cohort and Month of Birth Effects

(1) Adding a respective older cohort:

(2) Adding two comparison groups for the two cohorts:

“Before Treatment” – Pre cohort “Post Treatment” – Primary sample

June 1990 to February 1991 cohort June 1991 to February 1992 cohort

Control for cohort effects and seasonality in the timing of birth inIsrael.

Conception and birth In Israel

Second-generation immigrants from "Operation Moses“(parents immigrated before 1989)

Group A

Control for cohort effects and seasonality in the timing of conception inEthiopia.

Conception and birth In Ethiopia

Ethiopian born students who immigrated between 1992 and 2000

Group B

Students born in Ethiopia between June 1990 and February 1991 andimmigrated to Israel on "Operation Solomon":

Page 29: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Controlling for Cohort and Month of Birth Effects• Treatment definition by weeks:

(2)

• - Month of birth fixed effects

• - Students born between June 1990 and February 1991

• - Students born in Ethiopia

• - Students born in Israel to “Operation Moses” immigrants

• - Students born Ethiopia and immigrated after 1991

Page 30: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Schooling Attainment

Page 31: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Repetition and Matriculation OLS Baseline

Treatment

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 0.078** 0.068 0.151*** 0.137**(0.037) (0.041) (0.052) (0.057)

Trimester_2 0.054 0.051 -0.000 -0.005(0.038) (0.039) (0.049) (0.053)

Did not repeat 6th-12th

grade

Matriculation

diploma

Page 32: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Repetition and Matriculation Two Years Cohorts Sample

Treatment

Wit

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 0.411***0.073*** 0.072*** 0.097** 0.094*(0.108)(0.020) (0.022) (0.045) (0.047)

Trimester_2 0.135 0.058 0.054 0.026 0.023(0.094)(0.035) (0.035) (0.032) (0.030)

Observations 2473 2473 2473 2473 2473

Did not repeat 6th-12th

grade

Att

Matriculation

diploma

Page 33: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Quality of the Matriculation Program OLS Baseline

Treatment

With

Controls

No

Controls

Wit

No

Controls

With

Controls

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 3.387*** 3.129***3.096***0.444*** 0.426** 0.555*** 0.472** 0.016** 0.013**(1.034) (1.065)(0.950)(0.152) (0.163) (0.201) (0.199) (0.007) (0.006)

Trimester_2 2.613** 2.677**2.161**0.249 0.243 0.420* 0.401* 0.009 0.006(1.077) (1.088)(0.759)(0.156) (0.163) (0.210) (0.203) (0.006) (0.006)

Observations 624 624 2473 624 624 624 624 624 624

Matriculation units Math 5 unitsMath units English units

Page 34: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Quality of the Matriculation Program Two Years Cohorts Sample

Treatment

With

Controls

No

Controls

Wit

No

Controls

With

Controls

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 3.154*** 3.096***3.096***0.468*** 0.463*** 0.455* 0.436* 0.021** 0.020**(1.008) (0.950)(0.950)(0.118) (0.116) (0.249) (0.250) (0.009) (0.009)

Trimester_2 2.177** 2.161**2.161**0.194** 0.192** 0.328 0.311 0.015* 0.015*(0.861) (0.759)(0.759)(0.092) (0.085) (0.203) (0.194) (0.008) (0.008)

Observations 2473 2473 24732473 2473 2473 2473 2473 2473

Matriculation units Math 5 unitsMath units English units

Page 35: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect Size

Effect on Matriculation diploma is about twice the effect of attending a high quality primary school versus a low quality primary school

Gould, Lavy and Paserman, QJE May 2004:“Immigrating tp Opportunity: Estimating the Effect of School

quality Using A Natural Experiment on Ethiopians In Israel ”

Page 36: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Additional Results• Heterogeneity Effect by Gender:

• Large and significant effect for girls.• Small and insignificant effect for boys.

• Heterogeneity Effect by Family Education:

• Much larger and significant effect among the "high education" group.• Negligible effect for the low education group.

• Robustness Checks:

• Results are similar when dropping from the sample students who born in the last two weeks of February.

• Placebo test: Estimating equation (2) for the comparison groups only.

Page 37: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect By Gender

Page 38: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Repetition and Matriculation Two Years Cohorts Sample, GIRLS

Treatment

Wit

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 0.411***0.137*** 0.126*** 0.164* 0.157*(0.108)(0.037) (0.038) (0.081) (0.079)

Trimester_2 0.1350.098** 0.089* 0.093 0.089(0.094)(0.045) (0.047) (0.090) (0.091)

Observations 2473 1201 1201 1201 1201

Matriculation

diploma

Did not repeat 6th-12th

grade

Att

Page 39: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Repetition and Matriculation Two Years Cohorts Sample, BOYS

Treatment

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 0.011 0.013 0.064 0.063(0.043) (0.044) (0.052) (0.055)

Trimester_2 0.015 0.012 0.037 0.035(0.035) (0.036) (0.041) (0.041)

Observations 1272 1272 1272 1272

Matriculation

diploma

Did not repeat 6th-12th

grade

Page 40: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Quality of the Matriculation Program Two Years Cohorts Sample, GIRLS

Treatment

With

Controls

No

Controls

Wit

No

Controls

With

Controls

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 4.366*** 4.112***3.096***0.590*** 0.585*** 0.661* 0.626* 0.007 0.008(1.441) (1.407)(0.950)(0.163) (0.163) (0.333) (0.346) (0.011) (0.011)

Trimester_2 2.899* 2.699*2.161**0.118 0.111 0.516 0.478 0.016 0.016(1.498) (1.440)(0.759)(0.179) (0.170) (0.312) (0.338) (0.011) (0.011)

Observations 1201 1201 24731201 1201 1201 1201 1201 1201

Math 5 unitsMath units English unitsMatriculation units

Page 41: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Quality of the Matriculation Program Two Years Cohorts Sample, BOYS

Treatment

With

Controls

No

Controls

Wit

No

Controls

With

Controls

No

Controls

With

Controls

No

Controls

With

Controls

Trimester_1 2.191* 2.088*3.096***0.370* 0.359 0.307 0.259 0.036*** 0.033**(1.086) (1.078)(0.950)(0.206) (0.208) (0.260) (0.245) (0.012) (0.012)

Trimester_2 1.599* 1.581**2.161**0.271* 0.253 0.172 0.141 0.014 0.013(0.782) (0.680)(0.759)(0.152) (0.149) (0.234) (0.207) (0.009) (0.009)

Observations 1272 1272 24731272 1272 1272 1272 1272 1272

Math 5 unitsMath units English unitsMatriculation units

Page 42: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Why larger effect on girls?

Evidence of larger impact for girls is consistent with related literature.

1. Baird et al (2011) find that in DC girls infant mortality is significantly more

sensitive to aggregate economic shocks during pregnancy.

2. Field et al. (2009) find that delays in resupply of iodine for pregnant

women in Tanzania has larger educational improvements for girls.

3. Oreopoulos et al. (2008) show that effects of infant health on reaching

grade 12 by age 17 appear to be stronger for females than males.

4. Hoynes et al. (2012) find that increasing family resources during early

childhood improve health at adulthood for both men and women but have

positive significant effect on economic self-sufficiency only for women.

5. Gould et al. (2011) find that early childhood living conditions affected only

girls short and long term outcomes (until age sixty).

Page 43: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Why larger effect on girls?Other studies, suggest that from conception and during pregnancy, males are

more vulnerable than females.

1. Ravelli et al. (1999) show that in the Dutch famine during the Second World

War the number of boys born fell in relation to the number of girls.

2. Eriksson et al. (2010) suggests that in the womb boys have a more dangerous

growth strategy than girls. They grow more rapidly and invest less in placental

growth, which puts them at greater risk of becoming undernourished.

3. Kraemer (2000) discusses how the human male is, on most measures, more

vulnerable than the female, a vulnerability that is attributed in part to the biological

fragility of the male fetus and argues that girls are more likely to survive adverse

in utero health conditions.

Page 44: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Why larger effect on girls?

If there are more spontaneous abortions of boys in utero during adverse

conditions, as suggested in the literature, one possible explanation for our

findings could then be that better environmental conditions early in utero

enabled marginal boys to be born.

This could explain the absence of an effect of early exposure to better

environmental conditions among boys since we compare between

relatively stronger boys born to mothers who immigrated during weeks

25+ and marginal boys born to mothers who immigrated during weeks 1-

7.

Page 45: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect by Parental Education

Page 46: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Repetition and Matriculation Two Years Cohorts Sample, By Education

TreatmentNo Controls With Controls No Controls With Controls

Trimester_1 0.102*** 0.097*** 0.034 0.029

(0.026) (0.026) (0.028) (0.031)

Trimester_2 0.088** 0.081** -0.019 -0.026

(0.031) (0.035) (0.041) (0.041)

Observations 1489 1489 1489 1489

Trimester_1 0.008 0.017 0.220** 0.203*

(0.066) (0.069) (0.099) (0.098)

Trimester_2 -0.020 -0.020 0.112* 0.098

(0.075) (0.077) (0.059) -0.058

Observations 984 984 984 984

Low Education

High Education

Did not repeat 6th-12th grade Matriculation diploma

Page 47: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Quality of the Matriculation Program Two Years Cohorts Sample, By Education

Treatment

With Controls No Controls Wi

No Controls With Controls No Controls With Controls No Controls With Controls

Trimester_1 2.815*** 2.823*** 3.096***0.457*** 0.448*** 0.391* 0.400** 0.036** 0.036**(0.954) (0.863) (0.950) (0.138) (0.132) (0.205) (0.189) (0.014) (0.014)

Trimester_2 2.019 2.035 2.161** 0.240 0.234 0.140 0.155 0.025** 0.025**(1.337) (1.311) (0.759) (0.204) (0.200) (0.226) (0.210) (0.012) (0.012)

Observations 1489 1489 2473 1489 1489 1489 1489 1489 1489

Trimester_1 5.115* 4.495 3.096***0.817*** 0.762** 0.729 0.661 0.003 0.002(2.676) (2.597) (0.950) (0.273) (0.275) (0.580) (0.590) (0.017) (0.015)

Trimester_2 4.109* 3.706* 2.161** 0.633** 0.595** 0.612 0.555 0.014 0.012(2.329) (2.066) (0.759) (0.254) (0.234) (0.527) (0.499) (0.011) (0.011)

Observations 984 984 984 984 984 984 984 984

Math 5 unitsMath units English units

Low Eduction

High Education

Matriculation units

Page 48: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Why larger effect in educated families?

These results are consistent with previews findings in the literature . Studies found that the negative impact of poor fetal health [Currie and Hyson (1999)] or exposure to negative shocks in utero [Almond, Edlund and Palme (2009)] on human capital accumulation is greater in low-education or low-income

families . The explanation given for this finding is that higher educated families tend to

compensate for negative shocks to fetal health or to poor birth health outcomes . Moreover, negative shocks have usually smaller effects on children in high

income families because they are less vulnerable . In our analysis we evaluate the effect of positive shock so obtain the opposite result. The explanation can be that mothers with some formal education are able to take more advantage of a positive environmental shock by accessing more better medical technologies and nutrition.

Page 49: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Birth Weight

Page 50: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Birth Weight

No Controls With Controls No Controls With Controls

trimester_1 55.097 45.474 23.378 22.342(64.204) (62.415) (70.271) (65.017)

trimester_2 68.656 62.457 1.283 -5.066(61.729) (58.122) (76.401) (70.150)

47.545 47.954(50.822) (54.760)

Observations 612 612 1082 1082

Treatment

Operation Moses

Only "Operation Solomon"

"Operation Solomon" & "Operation Moses"

Page 51: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Low Birth Weight (< 2500 gr)

No Controls With Controls No Controls With Controls

trimester_1 -0.013 -0.013 0.010 0.008(0.039) (0.036) (0.044) (0.043)

trimester_2 -0.023 -0.024 -0.017 -0.018(0.039) (0.038) (0.042) (0.039)

0.005 -0.002(0.032) (0.034)

Observations 612 612 1082 1082

Only "Operation Solomon"

"Operation Solomon" & "Operation Moses"

Treatment

Operation Moses

Page 52: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Very Low Birth Weight (< 1500 gr)

No Controls With Controls No Controls With Controls

trimester_1 -0.003 -0.001 -0.019 -0.014(0.008) (0.007) (0.013) (0.011)

trimester_2 0.001 0.002 -0.025* -0.021*(0.009) (0.008) (0.013) (0.011)

-0.005 -0.003(0.009) (0.009)

Observations 612 612 1082 1082

Treatment

Operation Moses

Only "Operation Solomon"

"Operation Solomon" & "Operation Moses"

Page 53: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Potential Longer Term Returns

Page 54: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Potential Longer Term Benefit Annual wage Post secondery

educationUniversity Years at University

Mean 52002.62 0.632 0.056 0.142

Explanatory variable

4782.43** 0.217*** 0.116*** 0.340***(2304.6) (0.026) (0.017) (0.056)

376.969*** 0.016*** 0.004*** 0.012***(105.64) (0.001) (0.001) (0.002)

204.845*** 0.007*** 0.002*** 0.006***(55.98) (0.001) (0.000) (0.001)

6824.714 0.171*** 0.134*** 0.184**(4636.27) (0.024) (0.039) (0.074)

Observation 1115 1115 1115 1115

Advance math

Matriculation diploma

Matriculation units

Matriculation average score

Page 55: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Conclusions• Exposure to better environmental conditions in utero during the first trimester

of gestation (before week 13 at the latest or week 8 at the earliest) is

associated with substantially better high stakes cognitive achievements by

end of high school.

• Large expected earnings gain at adulthood.

• Expected large effect on productivity and standard of living (ignoring general

equilibrium effects).

• Policy implications for developing countries: importance of pre-natal

nutritional supplement programs, gains outweigh cost

• Policy implications for developed countries with immigration from poor

African countries (ex., Israel, Italy, France, Spain): target prenatal nutritional

supplements

Page 56: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Definition of Treatment

By Weeks (by the critical period for fetus brain development):

By Trimester:

Page 57: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

0-45-89-1213-1617-2021-2425-2829-3233-38-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

Figure 2: Coefficients of weeks (grouped by 4 weeks) of gestation at immigration on total matriculation units

Weeks of gestation at immigration (33-38 omitted)

Page 58: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Linear regression: searching for the critical period

Estimated Effect of In-Utero Environment on Schooling Outcomes by Age 18 -Linear effect

Dropped out of high school before

completing 12th grade

Obtained a matriculation diploma

after 12 years of schooling

Total matriculation units

Math matriculation units

English matriculation units

Dependent variable

  (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Week

0.001 -0.003 -0.005**

-0.021***

-0.175*** -0.323**

-0.022*** -0.054**

-0.029*** -0.073**

(0.002) (0.005) (0.002) (0.006) (0.046) (0.164) (0.006) (0.022) (0.007) (0.027)

Week^20.000 0.000 0.005 0.001 0.001*

(0.000) (0.000) (0.005) (0.001) (0.001)

Number of students

418

                             

Page 59: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Attending a Regular School, Repetition and Matriculation Two Years Cohorts Sample, By Education and Gender

TreatmentNo Controls With Controls W

iNo Controls With Controls No Controls With Controls

Trimester_1 0.089 0.115 0.411*** -0.083 -0.044 0.063 0.092

(0.099) (0.114) (0.108) (0.112) (0.127) (0.066) (0.068)

Trimester_2 -0.072 -0.071 0.135 -0.080 -0.066 0.017 0.040

(0.083) (0.090) (0.094) (0.118) (0.143) (0.040) (0.036)

Observations 478 478 478 478 478 478

Trimester_1 0.592*** 0.540** 0.101* 0.097 0.385** 0.367***

(0.186) (0.189) (0.056) (0.061) (0.139) (0.124)

Trimester_2 0.146 0.100 0.044 0.049 0.214* 0.189

(0.154) (0.161) 2473 (0.076) (0.078) (0.107) (0.114)

Observations 506 506 506 506 506 506

High Education - Boys

High Education - Girls

Did not repeat 6th-12th gradeAttend regular school Matriculation diploma

Page 60: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Effect on Quality of the Matriculation Program Two Years Cohorts Sample, By Education and Gender

Treatment

With Controls No Controls Wi

No Controls With Controls No Controls With Controls No Controls With Controls

Trimester_1 -1.251 -1.345 3.096*** 0.432* 0.451 -0.352 -0.358 0.026 0.027(2.464) (2.729) (0.950) (0.240) (0.282) (0.502) (0.568) (0.024) (0.020)

Trimester_2 0.728 0.464 2.161** 0.406 0.384 -0.066 -0.120 0.002 0.004(2.471) (2.357) (0.759) (0.303) (0.292) (0.489) (0.495) (0.006) (0.007)

Observations 478 478 2473 478 478 478 478 478 478

Trimester_1 10.818*** 9.899*** 3.096***1.176*** 1.090*** 1.706*** 1.666** -0.019 -0.023(2.618) (2.660) (0.950) (0.325) (0.327) (0.576) (0.617) (0.019) (0.021)

Trimester_2 7.020*** 6.183** 2.161** 0.842*** 0.775** 1.173** 1.173* 0.022 0.020(1.954) (2.310) (0.759) (0.263) (0.305) (0.519) (0.579) (0.022) (0.023)

Observations 506 506 506 506 506 506 506 506

Math 5 unitsMath units English units

High Eduction - Boys

High Education - Girls

Matriculation units

Page 61: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Summary Statistics

• Background characteristics:• Comparing our primary sample to other students (Ethiopian origin and

Israeli natives) in the same cohort.

Page 62: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Summary Statistics

• Outcome variables:• Comparing our primary sample to other students (Ethiopian origin and

Israeli natives) in the same cohort.

Page 63: Out of Africa: Human Capital Consequences of In Utero Conditions Victor Lavy University of Warwick and Hebrew University Analia Schlosser Tel Aviv University

Placebo TestEstimating equation (2) for the comparison groups only: