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Income Shocks and Child Mortality Rates: Evidence from Fluctuations in Oil Prices

Author

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  • Catalina Rivero
  • Pedro Acuna

Abstract

Previous studies show that children in lower socioeconomic status families reveal higher rates of mortality. We complement the income-mortality literature by establishing a causal link between income and child mortality. Our instrument for income is based on time-series global shocks to oil prices combined with the cross-sectional share of employment in manufacturing across US states as their exposure to oil price changes. Using the universe of death records between the years 1975-2004, we find the OLS results of income-child-mortality relationships are under-biased. The 2SLS-IV results suggest that a $1,000 increase in income per capita at the state level reduces child mortality and infant mortality by 0.87 and 0.53 fewer incidences per 1,000 population of age-specific children.

Suggested Citation

  • Catalina Rivero & Pedro Acuna, 2021. "Income Shocks and Child Mortality Rates: Evidence from Fluctuations in Oil Prices," The Economics and Finance Letters, Conscientia Beam, vol. 8(1), pages 70-81.
    • Handle: RePEc:pkp:teafle:v:8:y:2021:i:1:p:70-81:id:1666
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