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When It Rains It Pours: The Long-Run Economic Impacts of Salt Iodization in the United States

Author

Listed:
  • Achyuta Adhvaryu

    (University of Michigan and NBER)

  • Steven Bednar

    (Elon University)

  • Teresa Molina

    (University of Hawaii at Manoa)

  • Quynh Nguyen

    (World Bank)

  • Anant Nyshadham

    (Boston College and NBER)

Abstract

In 1924, the Morton Salt Company began nationwide distribution of iodine-fortified salt. Access to iodine, a key determinant of cognitive ability, rose sharply. We compare outcomes for cohorts exposed in utero with those of slightly older, unexposed cohorts, across states with high versus low baseline iodine deficiency. Income increased by 11%, labor force participation rose 0.68 percentage points, and full-time work went up 0.9 percentage points due to increased iodine availability. These impacts were largely driven by changes in the economic outcomes of young women. In later adulthood, both men and women had higher family incomes due to iodization.

Suggested Citation

  • Achyuta Adhvaryu & Steven Bednar & Teresa Molina & Quynh Nguyen & Anant Nyshadham, 2020. "When It Rains It Pours: The Long-Run Economic Impacts of Salt Iodization in the United States," The Review of Economics and Statistics, MIT Press, vol. 102(2), pages 395-407, May.
    • Handle: RePEc:tpr:restat:v:102:y:2020:i:2:p:395-407
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    Cited by:

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    3. O'Donnell, Owen, 2024. "Health and health system effects on poverty: A narrative review of global evidence," Health Policy, Elsevier, vol. 142(C).
    4. Benjamin Ly Serena, 2022. "Cognitive consequences of iodine deficiency in adolescence: evidence from salt iodization in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(3), pages 869-902, July.
    5. Deng, Zichen & Lindeboom, Maarten, 2019. "A Bit of Salt, a Trace of Life: Gender Norms and the Impact of a Salt Iodization Program on Human Capital Formation of School Aged Children," IZA Discussion Papers 12629, Institute of Labor Economics (IZA).
    6. Niklas Bengtsson & Fredrik Sävje & Stefan Swartling Peterson, 2020. "Fetal Iodine Deficiency and Schooling: A Replication of Field, Robles, and Torero (2009)," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(2), pages 582-621, April.
    7. Zichen Deng & Maarten Lindeboom, 2021. "A Bit of Salt, A Trace of Life: Gender Norms and The Impact of a Salt Iodization Program on Human Capital Formation of School Aged Children," Papers 2021-01, Centre for Health Economics, Monash University.
    8. Lazuka, Volha, 2019. "It’s a long walk: Lasting effects of maternity ward openings on labour market performance," Lund Papers in Economic History 187, Lund University, Department of Economic History.
    9. Beuermann, Diether & Ramos Bonilla, Andrea & Stampini, Marco, 2024. "Can Conditional Cash Transfers Alter the Effectiveness of Other Human Capital Development Policies?," IDB Publications (Working Papers) 13484, Inter-American Development Bank.
    10. Krzysztof Karbownik & Anthony Wray, 2019. "Educational, Labor-market and Intergenerational Consequences of Poor Childhood Health," NBER Working Papers 26368, National Bureau of Economic Research, Inc.
    11. Araújo, Daniel & Carrillo, Bladimir & Sampaio, Breno, 2021. "The Long-Run Economic Consequences of Iodine Supplementation," Journal of Health Economics, Elsevier, vol. 79(C).
    12. Tafesse, W.;, 2018. "The effect of mandatory iodine fortification on cognitive test scores in rural India," Health, Econometrics and Data Group (HEDG) Working Papers 18/10, HEDG, c/o Department of Economics, University of York.
    13. Liza von Grafenstein & Abhijeet Kumar & Santosh Kumar & Sebastian Vollmer, 2023. "Medium‐Run Impacts of Iron‐Fortified School Lunch on Anaemia, Cognition, and Learning Outcomes in India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(6), pages 1262-1294, December.
    14. Wang, Yajun & Shen, Zheng & Liu, Wenhe & Liu, Yang & Tang, Bin, 2024. "Will the situation of Left-Behind children improve when their parents Return? evidence from China," Children and Youth Services Review, Elsevier, vol. 164(C).
    15. Zichen Deng & Maarten Lindeboom, 2020. "A Bit of Salt a Trace of Life - Gender Norms and The Impact of a Salt Iodization Program on Human Capital Formation of School Aged Children," Tinbergen Institute Discussion Papers 20-067/V, Tinbergen Institute.
    16. Mochamad Pasha & Marc Rockmore & Chih Ming Tan & Dhanushka Thamarapani, 2023. "Early Life Exposure to Above Average Rainfall and Adult Mental Health," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(4), pages 692-717, August.
    17. Deng, Zichen & Lindeboom, Maarten, 2022. "A bit of salt, a trace of life: Gender norms and the impact of a salt iodization program on human capital formation of school aged children," Journal of Health Economics, Elsevier, vol. 83(C).
    18. Tafesse, Wiktoria, 2022. "The effect of Universal Salt Iodization on cognitive test scores in rural India," World Development, Elsevier, vol. 152(C).
    19. Karen Clay & Ethan J. Schmick, 2020. "The Impact of an Environmental Shock on Black-White Inequality: Evidence from the Boll Weevil," NBER Working Papers 27101, National Bureau of Economic Research, Inc.
    20. Janet Currie, 2020. "Child health as human capital," Health Economics, John Wiley & Sons, Ltd., vol. 29(4), pages 452-463, April.

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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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