Pollution, Ability, and Gender-Specific Investment Responses to Shocks. Issue 1 (11th March 2020)

• Record Type: Journal Article
• Authors: Molina, Teresa
• Is Part Of: Journal of the European Economic Association. Volume 19:Issue 1(2021)
• Page Start: 580
• Page End: 619
• Publication Date: 2020-03-11
• Subjects: Economics -- Periodicals; Économie politique -- Périodiques; Science économique; Périodique électronique (Descripteur de forme); Ressource Internet (Descripteur de forme); 330
• DOI: 10.1093/jeea/jvaa005
• Languages: English
• ISSNs: 1542-4766

Abstract

Abstract: This paper explores how labor market conditions drive gender differences in the human capital decisions of men and women. Specifically, I investigate how male and female schooling decisions respond to an exogenous change in cognitive ability. Using data from Mexico, I begin by documenting that in utero exposure to thermal inversions, which exacerbate air pollution, leads to lower cognitive ability in adulthood for both men and women. I then explore how male and female schooling decisions respond differentially to this cognitive shock: for women only, pollution exposure leads to reduced educational attainment and income. I show that this gender difference is explained by the fact that women disproportionately sort into white-collar jobs, where schooling and ability are more complementary than they are in blue-collar jobs.