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From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes

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  • Sandra E. Black
  • Paul Devereux
  • Kjell Salvanes

Abstract

Lower birth weight babies have worse outcomes, both short-run in terms of one year mortality rates and longer run in terms of educational attainment and earnings.However, recent research has called into question whether birth weight itself is important or whether it simply reflects other hard-to-measure haracteristics. By applying within twin techniques using a unique dataset from Norway, we xamine both short-run and long-run outcomes for the same cohorts. We find that birth weight does matter; very small short-run fixed effect estimates can be misleading because longer-run effects on outcomes such as height, IQ, earnings, and education are significant and similar in magnitude to OLS estimates. Our estimates suggest that eliminating birth weight differences between socio-economic groups would have sizeable effects on the later outcomes of children from poorer families.

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Bibliographic Info

Paper provided by Centre for the Economics of Education, LSE in its series CEE Discussion Papers with number 0061.

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Date of creation: Mar 2006
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Handle: RePEc:cep:ceedps:0061

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Web page: http://cee.lse.ac.uk/publications.htm

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Keywords: Labour Market Outcomes; Educational Attainment; Birth Weight;

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References

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  1. Douglas Almond & Kenneth Y. Chay & David S. Lee, 2004. "The Costs of Low Birth Weight," NBER Working Papers 10552, National Bureau of Economic Research, Inc.
  2. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2003. "Why the apple doesn't fall far: understanding intergenerational transmission of human capital," CeMMAP working papers CWP16/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. Conley, Dalton & Strully, Kate W. & Bennett, Neil G., 2006. "Twin differences in birth weight: The effects of genotype and prenatal environment on neonatal and post-neonatal mortality," Economics & Human Biology, Elsevier, vol. 4(2), pages 151-183, June.
  4. Sandra E. Black & Paul J. Devereux & Kjell Salvanes, 2005. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," NBER Working Papers 11796, National Bureau of Economic Research, Inc.
  5. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June.
  6. Janet Currie & Enrico Moretti, 2003. "Mother'S Education And The Intergenerational Transmission Of Human Capital: Evidence From College Openings," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1495-1532, November.
  7. S Black & Paul Devereux & Kjell Salvanes, 2005. "The More the Merrier? The Effect of Family Size and Birth Order on Childrens Education," CEE Discussion Papers 0050, Centre for the Economics of Education, LSE.
  8. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  9. Janet Currie & Rosemary Hyson, 1999. "Is the Impact of Health Shocks Cushioned by Socioeconomic Status? The Case of Low Birthweight," NBER Working Papers 6999, National Bureau of Economic Research, Inc.
  10. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
  11. Currie, Janet & Gruber, Jonathan, 1996. "Saving Babies: The Efficacy and Cost of Recent Changes in the Medicaid Eligibility of Pregnant Women," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1263-96, December.
  12. Janet Currie & Enrico Moretti, 2007. "Biology as Destiny? Short- and Long-Run Determinants of Intergenerational Transmission of Birth Weight," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 231-264.
  13. David S. Loughran & Ashlesha Datar & M. Rebecca Kilburn, 2004. "The Interactive Effect of Birth Weight and Parental Investment on Child Test Scores," Working Papers 168, RAND Corporation Publications Department.
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  1. Limits of social mobility
    by chris dillow in Stumbling and Mumbling on 2010-08-25 13:29:24
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