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The Permanent Effects of Recessions on Child Health: Evidence from Peru

  • Jorge M. Agüero

    (University of California, Riverside and SALDRU)

  • Martín Valdivia

    (Grupo de Análisis para el Desarrollo)

We explore the permanent effects that recessions have on health-related outcomes of mothers and children in Peru. To account for possible self-selection in giving birth during recessions, we compare the infant mortality rates of siblings born in different phases of the economic cycle. A 1 percent decline in GDP per capita is associated with an increase in infant mortality rates between 0.30 and 0.39 percent. We find evidence that recessions also have a negative effect on long-term health measures for surviving children. The additional negative effect found on prenatal care suggests that the permanent effects start while children are in-utero.

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Article provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.

Volume (Year): 25 (2010)
Issue (Month): 1 ()
Pages: 247-274

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Handle: RePEc:emx:esteco:v:25:y:2010:i:1:p:247-274
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