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

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Author Info

  • Bejenariu, Simona

    ()
    (Department of Economics)

  • Mitrut, Andreea

    ()
    (Uppsala Center for Labor Studies)

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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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Labor Studies with number 2012:5.

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Length: 67 pages
Date of creation: 02 Feb 2012
Date of revision: 10 Oct 2013
Handle: RePEc:hhs:uulswp:2012_005

Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Email:
Web page: http://www.nek.uu.se/
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Keywords: austerity measures; fetal shock; health at birth; selection in utero; Romania;

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