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Austerity Measures and Infant Health. Lessons from an Unexpected Wage Cut Policy

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  • Bejenariu, Simona

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Mitrut, Andreea

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

We investigate the effects on health at birth of a shock generated by a major (25%) and unexpected wage cut austerity measure that affected all public sector employees in Romania in 2010. Our findings suggest an overall improvement in health at birth for boys exposed to the shock in early gestation and a decreased sex ratio at birth among early exposed children. These findings are consistent with the selection in utero theory hypothesizing that maternal exposure to a significant shock early in gestation preponderantly selects against frail male fetuses, with healthier survivors being carried to term.

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File URL: http://hdl.handle.net/2077/34176
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 574.

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Length: 56 pages
Date of creation: 11 Oct 2013
Date of revision:
Handle: RePEc:hhs:gunwpe:0574

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: austerity measures; fetal shock; health at birth; selection in utero; Romania;

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