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Does unemployment worsen babies’ health? A tale of siblings, maternal behaviour, and selection

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  • De Cao, Elisabetta
  • McCormick, Barry
  • Nicodemo, Catia

Abstract

We study in-utero exposure to economic fluctuations on birth outcomes by exploiting geographical variation in the unemployment rate across local areas in England, and by comparing siblings born to the same mother. Using rich individual data from hospital administrative records for 2003–2012, babies’ health is found to be strongly pro-cyclical. This overall result masks marked differences between babies born in the most affluent areas whose health at birth improves in a recession, and babies born in the average-to-lowest income deprived areas whose health deteriorates. Maternal alcohol consumption, smoking, and delay in the first antenatal care assessment - combined with parental income loss, are found to drive the results. While differences in maternal risky behaviours can explain the heterogenous effects.

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  • De Cao, Elisabetta & McCormick, Barry & Nicodemo, Catia, 2022. "Does unemployment worsen babies’ health? A tale of siblings, maternal behaviour, and selection," LSE Research Online Documents on Economics 114365, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:114365
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    3. Sulin Sardoschau, 2024. "In utero exposure to violence and child health in Iraq," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-31, June.
    4. Balsa, Ana I. & Triunfo, Patricia, 2022. "The COVID-19 pandemic and birth outcomes in 2020: The role of prenatal care and other channels," Economics & Human Biology, Elsevier, vol. 47(C).
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    6. Diana Alessandrini & Bharat Diwakar, 2023. "The Intergenerational Effects of Recessions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 1060-1087, December.
    7. Sulin Sardoschau, 2023. "In-utero Exposure to Violence and Child Health in Iraq," Rationality and Competition Discussion Paper Series 452, CRC TRR 190 Rationality and Competition.
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    9. Reader, Mary, 2023. "The infant health effects of starting universal child benefits in pregnancy: evidence from England and Wales," LSE Research Online Documents on Economics 118458, London School of Economics and Political Science, LSE Library.
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    More about this item

    Keywords

    unemployment rate; birth outcomes; birthweight; fertility; England;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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