Abstract

This paper provides evidence for spillovers in learning and behavior within urban slums in Chandigarh, India. In a controlled experiment, mothers of children (aged 3-6 years) enrolled in government day-care centers were provided recipe books to lower their price per calorie. Spillovers to neighboring (untreated) mothers can be through learning or imitation. Theory suggests that this may increase or decrease their food expenditure. Results from a difference-in-differences analysis show that nutritional knowledge increases among neighboring untreated mothers relative to a control group and there is a corresponding reduction in food expenditure. Neighboring mothers exhibit learning spillovers and a reduction in expenditure regardless of their level of literacy.

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