In the first chapter, I use time use data from a longitudinal survey (covering Ethiopia, India and Vietnam), to examine how the amount of time children spend on different activities impacts their acquisition of cognitive and noncognitive skills. Modeling the skill formation production function of children and extending the set of inputs to include the child's own time inputs, the study finds that child involvement in work activities (paid or nonpaid) are associated with a reduction in both cognitive and noncognitive achievements. The results imply an indirect adverse effect of child work on skill development through the reduction of hours of study. In the second chapter, using a unique longitudinal survey from Ethiopia, we investigate whether resource constrained parents reinforce or attenuate differences in early abilities between their children. To overcome the potential endogeneity associated with measures of endowment, we construct a measure of human capital at birth that is plausibly net of prenatal investment. Furthermore, we estimate a sibling fixed-effect model to reduce the bias due to unobserved family-specific heterogeneity. We find that parents reinforce educational inequality, as inherently healthy children are more likely to attend preschool, be enrolled in elementary school, and have..
