Temperature and Human Capital in India

We estimate the effects of temperature on human capital production in India. We show that high temperatures reduce math and reading test scores among school-age children. Agricultural income is one mechanism driving this relationship—hot days during the growing season reduce agricultural yields and test scores with comparatively modest effects of hot days in the nongrowing season. The roll-out of a workfare program, by providing a safety net for the poor, substantially weakens the link between temperature and test scores. Our results imply that absent social protection programs, higher temperatures will have large negative impacts on human capital production of poor populations in agrarian economies.

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