Updated estimates of earnings benefits from reduced exposure of children to environmental lead

Abstract

The recent and important study by Schwartz found that almost three-fourths of the benefits of reduced lead exposure in children are in the form of earnings gains (earnings losses avoided). New data on recent trends in returns to education and cognitive skills in the labor market suggest a need to revise this estimate upward. Based on an analysis of data from the National Longitudinal Survey of Youth, the present study estimates that an upward revision of at least 50% (or $2.5 billion per annual birth cohort) is indicated. The study also finds evidence that percentage earnings gains are considerably larger for females than for males.