Higher wages are generally thought to increase human capital production, particularly in the developing world. We introduce a simple model of human capital production in which investments and time allocation differ by age. Using data on test scores and schooling from rural India, we show that...

Higher wages are generally thought to increase human capital production, particularly in the developing world. We introduce a simple model of human capital production in which investments and time allocation differ by age. Using data on test scores and schooling from rural India, we show that...

Higher wages are generally thought to increase human capital production especially in the developing world. We show that human capital investment is procyclical in early life (in utero to age 3), but then becomes countercyclical. We argue this countercyclical effect is caused by families...

Higher wages are generally thought to increase human capital production especially in the developing world. We show that human capital investment is procyclical in early life (in utero to age 3), but then becomes countercyclical. We argue this countercyclical effect is caused by families...