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We analyze the effects of early-life exposure to air pollution in a developing country on children's long-term human capital outcomes. We exploit the geographical variation of the 1997 Indonesian forest fires and cohort variation in exposure as a natural experiment. Children exposed to the fires are shorter on average three years post-exposure and have lower lung capacity 10 years post-exposure, but only children who were exposed in utero continue to exhibit shorter stature at 10 and 17 years post-exposure. We find suggestive evidence that these persistent effects may be due to expectant mothers experiencing poorer respiratory health during the fires. [End Page 1037] [ABSTRACT FROM AUTHOR]
