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Does a pint a day affect your child’s pay? The effect of prenatal alcohol exposure on adult outcomes

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Author Info

  • Nilsson, J Peter

    ()
    (Institute for Labour Market Policy Evaluation)

Abstract

This paper utilizes a Swedish alcohol policy experiment conducted in the late 1960s to identify the impact of prenatal alcohol exposure on educational attainments and labor market outcomes. The experiment started in November 1967 and was prematurely discontinued in July 1968 due to a sharp increase in alcohol consumption in the experimental regions, particularly among youths. Using a difference-in-difference-in-differences strategy we find that around age 30 the cohort in utero during the experiment have substantially reduced educational attainments, lower earnings and higher welfare dependency rates compared to the surrounding cohorts. The results indicate that investments in early-life health may have far reaching effects on economic outcomes later in life.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2008:4.

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Length: 46 pages
Date of creation: 11 Mar 2008
Date of revision:
Handle: RePEc:hhs:ifauwp:2008_004

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Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
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Web page: http://www.ifau.se/
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Keywords: Alcohol policy; infant health; education; earnings;

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References

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  1. 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.
  2. Michael Grossman & Sara Markowitz, 2002. "I Did What Last Night?!!! Adolescent Risky Sexual Behaviors and Substance Use," NBER Working Papers 9244, National Bureau of Economic Research, Inc.
  3. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
  4. Douglas Almond & Lena Edlund & Mårten Palme, 2009. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," The Quarterly Journal of Economics, MIT Press, vol. 124(4), pages 1729-1772, November.
  5. Anne Case & Angela Fertig & Christina Paxson, 2004. "The Lasting Impact of Childhood Health and Circumstance," Working Papers 246, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  6. 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.
  7. Hunt, Jennifer, 2006. "Do Teen Births Keep American Crime High?," Journal of Law and Economics, University of Chicago Press, vol. 49(2), pages 533-66, October.
  8. Marco Francesconi, 2008. "Adult Outcomes for Children of Teenage Mothers," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(1), pages 93-117, 03.
  9. Gerard J. van den Berg & Maarten Lindeboom & France Portrait, 2006. "Economic Conditions Early in Life and Individual Mortality," American Economic Review, American Economic Association, vol. 96(1), pages 290-302, March.
  10. Michael J. Moore & Philip J. Cook, 1995. "Habit and Heterogeneity in the Youthful Demand for Alcohol," NBER Working Papers 5152, National Bureau of Economic Research, Inc.
  11. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
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Cited by:
  1. James J. Heckman, 2008. "Schools, Skills, and Synapses," NBER Working Papers 14064, National Bureau of Economic Research, Inc.
  2. Jürges, Hendrik, 2012. "Collateral damage: Educational attainment and labor market outcomes among German war and post-war cohorts," MEA discussion paper series 12253, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  3. David Simon, 2013. "Does Early Life Exposure to Cigarette Smoke Permanently Harm Childhood Health? Evidence from Cigarette Tax Hikes," Working papers 2013-21, University of Connecticut, Department of Economics.
  4. Tara Watson & Angela Fertig, 2008. "Minimum Drinking Age Laws and Infant Health Outcomes," NBER Working Papers 14118, National Bureau of Economic Research, Inc.
  5. Wüst, Miriam, 2010. "The effect of cigarette and alcohol consumption on birth outcomes," Working Papers 10-5, University of Aarhus, Aarhus School of Business, Department of Economics.
  6. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-72, Summer.

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