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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
Peter Nilsson

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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 estimation strategy we find that around the age of 30 the cohort in utero during the experiment has 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 have far-reaching effects on economic outcomes in later life.

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Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP22/08.

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Date of creation: Aug 2008
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Handle: RePEc:ifs:cemmap:22/08

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Sandra E Black & Paul J Devereux & Kjell G Salvanes, 2007. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," The Quarterly Journal of Economics, MIT Press, vol. 122(1), pages 409-439, 02. [Downloadable!] (restricted)
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  2. Hunt, Jennifer, 2006. "Do Teen Births Keep American Crime High?," Journal of Law & Economics, University of Chicago Press, vol. 49(2), pages 533-66, October.
  3. Douglas Almond & Lena Edlund & MÃ¥rten Palme, 2007. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," NBER Working Papers 13347, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. 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, 03. [Downloadable!] (restricted)
  5. 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. [Downloadable!]
  6. 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. [Downloadable!]
  7. 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. [Downloadable!] (restricted)
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  8. 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. [Downloadable!] (restricted)
  9. Michael Grossman & Sarah Markowitz, 2005. "I Did What Last Night? Adolescent Risky Sexual Behaviors and Substance Abuse," Eastern Economic Journal, Eastern Economic Association, vol. 31(3), pages 383-405, Summer. [Downloadable!]
  10. Marco Francesconi, 2007. "Adult Outcomes for Children of Teenage Mothers," IZA Discussion Papers 2778, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. 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. [Downloadable!] (restricted)
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  1. Tara Watson & Angela Fertig, 2008. "Minimum Drinking Age Laws and Infant Health Outcomes," NBER Working Papers 14118, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. James J. Heckman, 2008. "Schools, Skills, and Synapses," NBER Working Papers 14064, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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