Children of War: The Long-Run Effects of Large-Scale Physical Destruction and Warfare on Children

This paper provides causal evidence on the long-term consequences of large-scale physical destruction on educational attainment, health status, and labor market outcomes of children. I exploit the plausibly exogenous region-by-cohort variation in the intensity of World War Two (WWII) destruction as a unique quasi-experiment. I find that exposure to destruction had long-lasting detrimental effects on the human capital formation, health, and labor market outcomes of Germans who were at school-age during WWII. An important channel for the effect of destruction on educational attainment is the destruction of schools whereas malnutrition is partly behind the estimated impact on health.