Compensation for girls in early childhood and its long-run impact: family investment strategies under rainfall shocks

This study explores the effect of early-life rainfall shocks on the long-run performance of children of different genders and possible mechanisms. Using data from a nationwide Chinese survey, we find that rainfall in children's year of birth increase girls' long-term test scores and educational attainment, whereas boys are unaffected. Our analysis of potential mechanisms indicates that birthyear rainfall leads to longer duration of breastfeeding for girls. We also find that, in years with more rainfall, mothers work fewer hours on agricultural work and parents are less likely to agree that raising children is to provide support for themselves in old age. Further analysis shows that rainfall in the current year disproportionately affects private health insurance for girls, indicating that positive rainfall shocks are associated with an increased willingness to invest in girls.