Sandra E. Black () (UCLA, NBER and IZA Bonn) Paul J. Devereux () (University College Dublin and IZA Bonn) Kjell G. Salvanes () (Norwegian School of Economics, Statistics Norway, Center for the Economics of Education (CEP) and IZA Bonn)
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Lower birth weight babies have worse outcomes, both short-run in terms of one-year mortality rates and longer run in terms of educational attainment and earnings. However, recent research has called into question whether birth weight itself is important or whether it simply reflects other hard-to-measure characteristics. By applying within twin techniques using a unique dataset from Norway, we examine both short-run and long-run outcomes for the same cohorts. We find that birth weight does matter; very small short-run fixed effect estimates can be misleading because longer-run effects on outcomes such as height, IQ, earnings, and education are significant and similar in magnitude to OLS estimates. Our estimates suggest that eliminating birth weight differences between socio-economic groups would have sizeable effects on the later outcomes of children from poorer families.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
1864.
Find related papers by JEL classification: J1 - Labor and Demographic Economics - - Demographic Economics I1 - Health, Education, and Welfare - - Health
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