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The Effects of a Household Income Shock on Infant Health. Evidence from a Welfare Benefits Reform

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  • Janssen, Simon

Abstract

We investigate the effect of a large welfare benefits cut on child health. Our identification strategy exploits a policy reform of the German welfare system that reduced benefits for families with infants by about 30 percent of their previous household income. The empirical analysis relies on novel and unique register data that includes detailed information about hospitalization, doctor visits, and pharmacy use for about 45, 000 children who were born before or after the reform. Although children from welfare families are on average less healthy than children from non-welfare families, the welfare cut had no additional negative impact on child health.

Suggested Citation

  • Janssen, Simon, 2018. "The Effects of a Household Income Shock on Infant Health. Evidence from a Welfare Benefits Reform," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181607, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181607
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    File URL: https://www.econstor.eu/bitstream/10419/181607/1/VfS-2018-pid-13863.pdf
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    References listed on IDEAS

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    1. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
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    3. Janet Currie & Mark Stabile & Phongsack Manivong & Leslie L. Roos, 2010. "Child Health and Young Adult Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    4. Janet Currie, 2009. "Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 87-122, March.
    5. David Cesarini & Erik Lindqvist & Robert Östling & Björn Wallace, 2016. "Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players," The Quarterly Journal of Economics, Oxford University Press, vol. 131(2), pages 687-738.
    6. Kamila Cygan-Rehm, 2016. "Parental leave benefit and differential fertility responses: evidence from a German reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 73-103, January.
    7. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    8. Simon Condliffe & Charles R. Link, 2008. "The Relationship between Economic Status and Child Health: Evidence from the United States," American Economic Review, American Economic Association, vol. 98(4), pages 1605-1618, September.
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    More about this item

    Keywords

    Childhood Health; Socioeconomic Status; Household Income;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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