The Economic Costs of Low Caloric Intake: Evidence from India

Featuring
Heather Schofield
Harvard University

One-seventh of the world’s population consumes less than the recommended caloric intake levels. Yet, the impact of this low caloric intake on productivity is unclear. In her new paper, Heather Schofield presents two analyses which find that changes in caloric intake result in substantial and broadly generalizable changes in productivity among malnourished adults.

The first draws on a five-week randomized controlled trial among cycle-rickshaw drivers in Chennai, in which half of the participants received an additional 700 calories per day. Schofield finds that treated individuals showed significant improvements in both physical and cognitive tasks as well as increased labor supply and income. The second study examines the impact of a 700 calorie per day decline in intake--caused by fasting during Ramadan--on agricultural production. She finds that overlap between Ramadan and the labor intensive portions of cropping cycles results in a 20 to 40 percent decrease in productivity, driven primarily by reduced caloric intake.