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Recessions are Not Good for Your Health: the Counter-Cyclical Health Outcomes Revisited

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  • Asali, Muhammad

Abstract

The net, positive, effect of unemployment at conception on birth outcomes in developed countries is likely overestimated in the literature. This is the consequence of ignoring the effects of unemployment during pregnancy. Using data from Israel, we not only confirm this finding but also find that the harmful effects of unemployment in the third trimester are large enough to offset any preceding positive effects. Stress and nutritional deficiencies due to economic contractions during pregnancy are at least as important as the positive self-selection at conception. This finding calls for policy intervention to support pregnant women even in developed countries.

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  • Asali, Muhammad, 2015. "Recessions are Not Good for Your Health: the Counter-Cyclical Health Outcomes Revisited," MPRA Paper 78204, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78204
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    References listed on IDEAS

    as
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    5. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1121-1167.
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    More about this item

    Keywords

    recession; health outcomes; birth weight; developed countries;
    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
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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