The relationship between unemployment and health continues to absorb social scientists. The primary reason is the potential significance of an association. If a substantial deterioration in aggregate health is related to economic downturns, then the cost of a recession may be much greater than the foregone output. This paper investigates the aggregate time-series relationship between unemployment and low birthweight with monthly data from the state of Tennessee from 1970 through 1989. The study differs from previous work in that we decompose the unemployment rate into its structural and cyclical components. Moreover, we use vector autoregressions to test the reduced form relationship between unemployment and low birthweight. The well-defined exogeneity of unemployment and the lag length restriction imposed by the duration of a pregnancy strengthens the specification considerably. We fail to find a relationship between unemployment and low birthweight. This basic finding remains unchanged irrespective of whether we test structural or cyclical unemployment, or whether we use total or race-specific rates of low birthweight.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
3694.
Length: Date of creation: Jun 1993 Date of revision: Handle: RePEc:nbr:nberwo:3694
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Find related papers by JEL classification: I12 - Health, Education, and Welfare - - Health - - - Health Production
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Timothy Halliday, 2006.
"Income Risk and Health,"
Working Papers
200612, University of Hawaii at Manoa, Department of Economics.
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Timothy J. Halliday, 2007.
"Income Risk and Health,"
Working Papers
200710, University of Hawaii at Manoa, Department of Economics.
[Downloadable!]