Some Holocaust survivors in Israel began receiving compensation from Germany and through the Israeli government in the 1950s, while others became eligible only in the 1990s. I find that children born to parents who received the compensation from the 1950s have more years of schooling than children who were already adults in the 1990s, when their parents began receiving compensation. The findings are more prominent among girls, with an average effect of 0.07–0.42 years of schooling, depending on compensation. These equal 10–60 percent of the average salary, respectively.

 Keywords: Household, Human capital, Compensation, Children, Holocaust, Second generation.


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