Abstract
We examine whether economic downturns are beneficial to health outcomes of newborn infants in developed countries. For this we use merged population-wide registers on health and economic and demographic variables, including the national medical birth register and intergenerational link registers from Sweden covering 1992–2004. We take a rigorous econometric approach that exploits regional variation in unemployment and compares babies born to the same parents so as to deal with possible selective fertility based on labour market conditions. We find that downturns are beneficial; an increase in the unemployment rate during pregnancy reduces the probability of having a birth weight less than 1500 grams or of dying within 28 days of birth. Effects are larger in low socio-economic status households. Health improvements cannot be attributed to the parents’ own employment status. Instead, the results suggest other pathways triggered by the economic cycle.
| Original language | English |
|---|---|
| Article number | 101795 |
| Number of pages | 16 |
| Journal | Labour Economics |
| Volume | 63 |
| Early online date | 7 Jan 2020 |
| DOIs | |
| Publication status | Published - Apr 2020 |
Funding
We thank the Editor Michele Pellizzari, two anonymous Referees, Anna Sjögren and participants at a seminar at the University of Aarhus and at EEA/ESEM and EALE conferences for useful comments and suggestions. Also, we thank Statistics Sweden and Socialstyrelsen for the use of the micro data registers and Hans-Martin von Gaudecker and Mårten Palme for their efforts in making these data accessible. We thank IFAU Uppsala, in particular Linus Liljeberg and Olof Åslund, for the data on unemployment rates. Financial support from the German Science Foundation DFG Grant RE 3086/1-1 and the European Research Council through Starting Grant No. 313719 is acknowledged. This paper was previously titled: “Economic Conditions, Parental Employment and Health of Newborns”.
| Funders | Funder number |
|---|---|
| Aarhus Universitet | |
| IFAU Uppsala | |
| European Commission | |
| European Research Council | |
| Seventh Framework Programme | 313719 |
| German Science Foundation DFG | RE 3086/1-1 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
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