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Money Transfer And Birth Weight: Evidence From The Alaska Permanent Fund Dividend

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  • Wankyo Chung
  • Hyungserk Ha
  • Beomsoo Kim

Abstract

type="main" xml:id="ecin12235-abs-0001"> The positive relationship between income and health is well established. However, the direction of causality remains unclear: do economic resources influence health, or vice versa? Exploiting a new source of exogenous income variation, this study examines the impact of the Alaska Permanent Fund Dividend (APFD) on newborns' health outcomes. The results show that income has a significantly positive, but modest effect on birth weight. We find that an additional $1,000 ($2,331 in 2011 dollars) increases birth weight by 17.7 g and substantially decreases the likelihood of a low birth weight (a decrease of around 14% of the sample mean). Furthermore, the income effect is higher for less-educated mothers. Based on a gestation-weight profile in the sample, increased gestation owing to the APFD could explain a maximum of 34%–57% of the measured weight increase, although we are unable to examine all the potential mechanisms. (JEL I10, I18, I12)

Suggested Citation

  • Wankyo Chung & Hyungserk Ha & Beomsoo Kim, 2016. "Money Transfer And Birth Weight: Evidence From The Alaska Permanent Fund Dividend," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 576-590, January.
    • Handle: RePEc:bla:ecinqu:v:54:y:2016:i:1:p:576-590
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    File URL: http://hdl.handle.net/10.1111/ecin.2016.54.issue-1
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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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