IDEAS home Printed from https://ideas.repec.org/a/vrs/econom/v9y2021i1p69-83n11.html
   My bibliography  Save this article

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

Author

Listed:
  • Rivero Catalina

    (Department of Economics, University of Buenos Aires, Ayacucho 1245 (C1111AAI) - Buenos Aires, Argentina)

  • Acuna Pedro

    (Department of Economics, University of Buenos Aires, Ayacucho 1245 (C1111AAI) - Buenos Aires, Argentina)

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

  • Rivero Catalina & Acuna Pedro, 2021. "Income Shocks and Child Mortality Rates: Evidence from Fluctuations in Oil Prices," Economics, Sciendo, vol. 9(1), pages 69-83, June.
    • Handle: RePEc:vrs:econom:v:9:y:2021:i:1:p:69-83:n:11
    DOI: 10.2478/eoik-2021-0002
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/eoik-2021-0002
    Download Restriction: no
    File URL: https://libkey.io/10.2478/eoik-2021-0002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Raphael, Steven & Winter-Ember, Rudolf, 2001. "Identifying the Effect of Unemployment on Crime," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 259-283, April.
    2. Leonard, Jonathan & Mas, Alexandre, 2008. "Welfare reform, time limits, and infant health," Journal of Health Economics, Elsevier, vol. 27(6), pages 1551-1566, December.
    3. Eli, Shari, 2015. "Income Effects on Health: Evidence from Union Army Pensions," The Journal of Economic History, Cambridge University Press, vol. 75(2), pages 448-478, June.
    4. repec:dau:papers:123456789/425 is not listed on IDEAS
    5. Jérôme Adda & James Banks & Hans-Martin von Gaudecker, 2009. "The Impact of Income Shocks on Health: Evidence from Cohort Data," Journal of the European Economic Association, MIT Press, vol. 7(6), pages 1361-1399, December.
    6. Allen, Osvalso & Brown, Ava & Wang, Ersong, 2021. "Socioeconomic Disparities in the Effects of Pollution on Spread of Covid-19: Evidence from US Counties," MPRA Paper 105151, University Library of Munich, Germany.
    7. Currie, Janet & Neidell, Matthew & Schmieder, Johannes F., 2009. "Air pollution and infant health: Lessons from New Jersey," Journal of Health Economics, Elsevier, vol. 28(3), pages 688-703, May.
    8. Sarah Baird & Jed Friedman & Norbert Schady, 2011. "Aggregate Income Shocks and Infant Mortality in the Developing World," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 847-856, August.
    9. Elder, Todd E. & Goddeeris, John H. & Haider, Steven J., 2016. "Racial and ethnic infant mortality gaps and the role of socio-economic status," Labour Economics, Elsevier, vol. 43(C), pages 42-54.
    10. Florence Jusot, 2006. "The shape of the relationship between mortality and income in France," Annals of Economics and Statistics, GENES, issue 83-84, pages 89-122.
    11. Dhaval M. Dave & Robert Kaestner & George L. Wehby, 2019. "Does public insurance coverage for pregnant women affect prenatal health behaviors?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 419-453, April.
    12. Brian Finch, 2003. "Early origins of the gradient: the relationship between socioeconomic status and infant mortality in the United States," Demography, Springer;Population Association of America (PAA), vol. 40(4), pages 675-699, November.
    13. Mikael Lindahl, 2005. "Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    14. Schnalzenberger, Mario, 2016. "Causal effect of income on health: Investigating two closely related policy reforms in Austria," The Journal of the Economics of Ageing, Elsevier, vol. 7(C), pages 6-16.
    15. Osvaldo Allen & Ava Brown & Ersong Wang, 2021. "Socioeconomic Disparities in the Effects of Pollution on Spread of Covid-19: Evidence from US Counties," Journal of Economics and Behavioral Studies, AMH International, vol. 12(6), pages 33-42.
    16. Kaplan, Erin K. & Collins, Courtney A. & Tylavsky, Frances A., 2017. "Cyclical unemployment and infant health," Economics & Human Biology, Elsevier, vol. 27(PA), pages 281-288.
    17. Myrskylä, M. & Mehta, N.K. & Chang, V.W., 2013. "Early life exposure to the 1918 influenza pandemic and old-age mortality by cause of death," American Journal of Public Health, American Public Health Association, vol. 103(7), pages 83-90.
    18. repec:adr:anecst:y:2006:i:83-84:p:04 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noghanibehambari, Hamid, 2022. "Intergenerational health effects of Medicaid," Economics & Human Biology, Elsevier, vol. 45(C).
    2. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    3. Elder, Todd E. & Goddeeris, John H. & Haider, Steven J., 2016. "Racial and ethnic infant mortality gaps and the role of socio-economic status," Labour Economics, Elsevier, vol. 43(C), pages 42-54.
    4. Moein Mirani Ahangarkolaei & Eser Demir & Tolga Constantinou & Mostafa Toranji & Tadashi Adino & Nasrin Tavassoli & Atefeh Noghani, 2021. "The Buffering Effects of Social Insurance for the Spread of Covid-19," Information Management and Business Review, AMH International, vol. 12(4), pages 19-27.
    5. Hope Corman & Dhaval Dave & Nancy E. Reichman, 2018. "Evolution of the Infant Health Production Function," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 6-47, July.
    6. Benedicte Apouey & Andrew E. Clark, 2015. "Winning Big but Feeling no Better? The Effect of Lottery Prizes on Physical and Mental Health," Health Economics, John Wiley & Sons, Ltd., vol. 24(5), pages 516-538, May.
    7. Chen, Xi & Wang, Tianyu & Busch, Susan H., 2019. "Does money relieve depression? Evidence from social pension expansions in China," Social Science & Medicine, Elsevier, vol. 220(C), pages 411-420.
    8. Oscar Erixson, 2017. "Health responses to a wealth shock: evidence from a Swedish tax reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1281-1336, October.
    9. Hannes Schwandt, 2018. "Wealth Shocks and Health Outcomes: Evidence from Stock Market Fluctuations," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 349-377, October.
    10. M. Taha Kasim & Benjamin Ukert, 2021. "The impact of WIC participation on tobacco use and alcohol consumption," Contemporary Economic Policy, Western Economic Association International, vol. 39(3), pages 608-625, July.
    11. Hans van Kippersluis & Titus J. Galama, 2013. "Why the Rich drink more but smoke less: The Impact of Wealth on Health Behaviors," Tinbergen Institute Discussion Papers 13-035/V, Tinbergen Institute.
    12. Jérôme Adda & Yarine Fawaz, 2020. "The Health Toll of Import Competition," The Economic Journal, Royal Economic Society, vol. 130(630), pages 1501-1540.
    13. William N. Evans & Craig L. Garthwaite, 2014. "Giving Mom a Break: The Impact of Higher EITC Payments on Maternal Health," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 258-290, May.
    14. Bhalotra, Sonia, 2010. "Fatal fluctuations? Cyclicality in infant mortality in India," Journal of Development Economics, Elsevier, vol. 93(1), pages 7-19, September.
    15. Averett, Susan L. & Wang, Yang, 2015. "The Effects of the Earned Income Tax Credit on Children's Health, Quality of Home Environment, and Non-Cognitive Skills," IZA Discussion Papers 9173, Institute of Labor Economics (IZA).
    16. van Kippersluis, Hans & Galama, Titus J., 2014. "Wealth and health behavior: Testing the concept of a health cost," European Economic Review, Elsevier, vol. 72(C), pages 197-220.
    17. Peng Nie & Qing Li & Alan A. Cohen & Alfonso Sousa-Poza, 2021. "In search of China’s income-health gradient: a biomarker-based analysis," Applied Economics, Taylor & Francis Journals, vol. 53(48), pages 5599-5618, October.
    18. Broughel, James & Viscusi, Kip, 2017. "Death by Regulation: How Regulations Can Increase Mortality Risk," Working Papers 06864, George Mason University, Mercatus Center.
    19. Vellore Arthi & Brian Beach & W. Walker Hanlon, 2017. "Estimating the Recession-Mortality Relationship when Migration Matters," NBER Working Papers 23507, National Bureau of Economic Research, Inc.
    20. Beomsoo Kim & Christopher J. Ruhm, 2012. "Inheritances, health and death," Health Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 127-144, February.

    More about this item

    Keywords

    Income; Child Mortality; Infant Mortality; Toddler Mortality; Income Inequality; Oil Price; Panel Data; Two-Stage Least Square; Instrumental Variable;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:econom:v:9:y:2021:i:1:p:69-83:n:11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.