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Childhood Health Shocks and the Intergenerational Transmission of Inequality

Author

Listed:
  • Eriksen, Tine Louise Mundbjerg

    (VIVE - The Danish Centre for Social Science Research)

  • Gaulke, Amanda

    (Kansas State University)

  • Svensson, Jannet

    (Copenhagen University Hospital)

  • Skipper, Niels

    (Aarhus University)

  • Thingholm, Peter Rønø

    (Aarhus University)

Abstract

We examine the role of health shocks in childhood and parental background in transmitting intergenerational inequality. We use Danish administrative registry data (a setting with universal access to health care) and the quasi-random onset of Type 1 Diabetes in childhood to document substantial penalties in adult employment and labor market income at age 30. We document wide disparities in treatment effects and show that high-socioeconomic parents mitigate the adverse impacts of the health shock. This gradient is partly driven by differential impacts on health and human capital across the socioeconomic distribution. Maternal educational attainment matters for adoption of new and more advanced treatment regimens.

Suggested Citation

  • Eriksen, Tine Louise Mundbjerg & Gaulke, Amanda & Svensson, Jannet & Skipper, Niels & Thingholm, Peter Rønø, 2023. "Childhood Health Shocks and the Intergenerational Transmission of Inequality," IZA Discussion Papers 16447, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16447
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    References listed on IDEAS

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    1. Douglas Almond & Janet Currie & Valentina Duque, 2018. "Childhood Circumstances and Adult Outcomes: Act II," Journal of Economic Literature, American Economic Association, vol. 56(4), pages 1360-1446, December.
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    4. Betty Tao & Massimo Pietropaolo & Mark Atkinson & Desmond Schatz & David Taylor, 2010. "Estimating the Cost of Type 1 Diabetes in the U.S.: A Propensity Score Matching Method," PLOS ONE, Public Library of Science, vol. 5(7), pages 1-11, July.
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    6. J. Peter Nilsson, 2017. "Alcohol Availability, Prenatal Conditions, and Long-Term Economic Outcomes," Journal of Political Economy, University of Chicago Press, vol. 125(4), pages 1149-1207.
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    More about this item

    Keywords

    intergenerational transmission of inequality; childhood health shocks; labor market outcomes;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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