Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung
We analyze the impact of access to piped water on human capital formation as measured by test scores from standardized school exams at Brasilian primary schools. We fi nd a positive and signi ficant eff ect of around 11 percent of the standard deviation of mean test scores. The eff ect of piped water on test scores increases with the level of education of the mother. This complementarity is more pronounced for families with income below average income and vanishes for families with income above mean. This allows important policy recommendations. Developing countries should focus infrastructure expansion on low income areas and complement them with educational interventions for families with low educational background to increase returns on investment.