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Economic shocks and infant health: Evidence from a trade reform in Brazil

Author

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  • Charris, Carlos
  • Branco, Danyelle
  • Carrillo, Bladimir

Abstract

Using a uniquely rich set of data sources spanning more than 3,000 Brazilian municipalities over a horizon of 25 years, we investigate the effects of changes in local economic conditions generated by a trade liberalization reform on infant mortality. We exploit variation in import tariff reductions, together with differences in the baseline industry composition across locations, for identification. We find that areas with greater exposure to the trade-induced economic shock experienced a larger decline in infant mortality. In our exploration of mechanisms, we find the most support for the hypothesis that worse labor market opportunities make it less costly undertake health-improving behaviors that are time intensive. Consistent with this hypothesis, we observe a significant decline in female employment rates and an increase in the use of basic health services among women of childbearing ages and infants. We also document that the rollout of a community-based intervention that brings basic health services to the home in a flexible fashion lowers the magnitude of the mortality effect, providing further evidence in favor of the parental time mechanism.

Suggested Citation

  • Charris, Carlos & Branco, Danyelle & Carrillo, Bladimir, 2024. "Economic shocks and infant health: Evidence from a trade reform in Brazil," Journal of Development Economics, Elsevier, vol. 166(C).
    • Handle: RePEc:eee:deveco:v:166:y:2024:i:c:s0304387823001499
    DOI: 10.1016/j.jdeveco.2023.103193
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    More about this item

    Keywords

    Trade liberalization; Economic shocks; Infant mortality; Public health policy;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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