Life Expectancy and Human Capital Investments: Evidence from Maternal Mortality Declines

Working Paper: NBER ID: w13947

Authors: Seema Jayachandran; Adriana Lleras-Muney

Abstract: Longer life expectancy should encourage human capital accumulation, since a longer time horizon increases the value of investments that pay out over time. Previous work has been unable to determine the empirical importance of this life-expectancy effect due to the difficulty of isolating it from other effects of health on education. We examine a sudden drop in maternal mortality risk in Sri Lanka between 1946 and 1953, which creates a sharp increase in life expectancy for school-age girls without contemporaneous effects on health, and which also allows for the use of boys as a control group. Using additional geographic variation, we find that the 70% reduction in maternal mortality risk over the sample period increased female life expectancy at age 15 by 4.1%, female literacy by 2.5%, and female years of education by 4.0%.

Keywords: life expectancy; human capital; maternal mortality; education; Sri Lanka

JEL Codes: I10; I20; O15


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Female Life Expectancy at age 15 (J17)Female Literacy Rates (F63)
Female Life Expectancy at age 15 (J17)Years of Education for Females (I21)
Maternal Mortality Ratio (MMR) declines (O15)Female Life Expectancy at age 15 (J17)
Maternal Mortality Ratio (MMR) declines (O15)Female Literacy Rates (F63)
Maternal Mortality Ratio (MMR) declines (O15)Years of Education for Females (I21)

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