This paper gives causal evidence from a developing country context that children exposed to lead at a young age exhibit worse cognitive outcomes.
The paper uses data from Indonesia on lead-contaminated sites such as recycling operations for used lead-acid batteries. It finds large negative impacts on numeracy and general cognitive ability among respondents who were exposed in utero or during early childhood and lived within 6 kilometers of a site. The learning penalty in numeracy is equivalent to about 3 years of primary schooling for those who lived within 3 kilometers of a site and 1.4 years for those who lived 3?6 kilometers away. The paper highlights the importance of preventing lead exposure, especially among children.