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Local Economic Shocks and Human Capital Accumulation : Evidence from Rwandan Coffee Mills
This paper examines the medium-term effects of policy- driven income shocks on human capital accumulation in low-income environments. Using administrative data on test scores of the universe of primary school students in Rwanda and the staggered rollout of coffee mills in the country, it shows a positive spillover effect of the coffee mills on students’ performance. Early life exposure to coffee mills is associated with a 0.09 standard deviation (4 percent) increase in student test scores. Improvements in household welfare, child health, and school attendance are likely operative channels of impact.
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