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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)

  • Mitrut, Andreea

    (Department of Economics)

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.

Suggested Citation

  • Bejenariu, Simona & Mitrut, Andreea, 2012. "Austerity Measures and Infant Health. Lessons from an Unexpected Wage Cut Policy," Working Paper Series 2012:4, Uppsala University, Department of Economics, revised 10 Oct 2013.
    • Handle: RePEc:hhs:uunewp:2012_004
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    Cited by:

    1. Borcan, Oana & Lindahl, Mikael & Mitrut, Andreea, 2014. "The impact of an unexpected wage cut on corruption: Evidence from a “Xeroxed” exam," Journal of Public Economics, Elsevier, vol. 120(C), pages 32-47.
    2. Kjellander, Josef & Nilsson, Viktor & van Vuuren, Aico, 2018. "The Impact of the Announcement of Temporary Building Sites for Refugees on House Prices in Gothenburg," IZA Discussion Papers 11726, Institute of Labor Economics (IZA).
    3. Bejenariu, Simona & Mitrut, Andreea, 2014. "Bridging the Gap for Roma Women: The Effects of a Health Mediation Program on Roma Prenatal Care and Child Health," Working Papers in Economics 590, University of Gothenburg, Department of Economics.

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    More about this item

    Keywords

    austerity measures; fetal shock; health at birth; selection in utero; Romania;
    All these keywords.

    JEL classification:

    • I19 - Health, Education, and Welfare - - Health - - - Other
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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