How Large Are the Effects from Temporary Changes in Family Environment: Evidence from a Child-Evacuation Program during World War II

During World War II, some 50,000 Finnish children were evacuated to Sweden and placed in foster families. The evacuation scheme limited sharply the scope for selection into foster care based on background characteristics. A first-come first-served policy was applied where the children were assigned a running number and processed anonymously. Using register and survey data, I examine the extent to which the foster environment affected later life outcomes of the Finnish child evacuees. The results show that nurture, the socioeconomic environment at early stages of life, has important effects on schooling. (JEL I21, J13, J24, N34, N44)