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The Influence of Early-Life Events on Human Capital, Health Status, and Labor Market Outcomes Over the Life Course

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  • Johnson, Rucker C.
  • Schoeni, Robert F.

Abstract

Using nationally representative data from the US, this study provides evidence on the relationship between early life conditions and cognition, human capital accumulation, labor market outcomes, and health status in adulthood. We find that poor health at birth and limited parental resources (including low income, lack of health insurance, and unwanted pregnancy) interfere with cognitive development and health capital in childhood, reduce educational attainment, and lead to worse labor market and health outcomes in adulthood. These effects are substantial, and they are robust to the inclusion of sibling fixed effects and an extensive set of controls. The results reveal that low birth weight ages you by 12 years, increases the odds of dropping out of high school by one-third, lowers labor force participation by 5 percentage points, and reduces labor market earnings by roughly 15 percent. Not only are socioeconomic factors determinants of poor birth outcomes, but they also influence the lasting impacts of poor infant health when it occurs. In particular, the negative long-run consequences of low birth weight are larger among children whose parents did not have health insurance. While poor birth outcomes reduce human capital accumulation, this consequence explains only 10% of the total effect of low birth weight on labor market earnings. The study also finds that racial differences in adult health can be explained by a few early life factors: birth weight, parental income, and parental health insurance coverage. Finally, the paper sheds light on the well known strong relationship between education and health outcomes; we find that sibling models that account for time-invariant family factors reduce the effects of education on health substantially, but the remaining effects are large. Taken together, the evidence is consistent with a negative reinforcing intergenerational transmission of disadvantage within the family; parental economic status influences birth outcomes, birth outcomes have long reaching effects on health and economic status in adulthood, which in turn leads to poor birth outcomes for one’s own children.

Suggested Citation

  • Johnson, Rucker C. & Schoeni, Robert F., 2007. "The Influence of Early-Life Events on Human Capital, Health Status, and Labor Market Outcomes Over the Life Course," Institute for Research on Labor and Employment, Working Paper Series qt71p310w1, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt71p310w1
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    Cited by:

    1. Chatterji, Pinka & Lahiri, Kajal & Kim, Dohyung, 2014. "Fetal growth and neurobehavioral outcomes in childhood," Economics & Human Biology, Elsevier, vol. 15(C), pages 187-200.
    2. DeCicca, Philip & Malak, Natalie, 2020. "When good fences aren’t enough: The impact of neighboring air pollution on infant health," Journal of Environmental Economics and Management, Elsevier, vol. 102(C).
    3. Jonas Helgertz & Tommy Bengtsson, 2019. "The Long-Lasting Influenza: The Impact of Fetal Stress During the 1918 Influenza Pandemic on Socioeconomic Attainment and Health in Sweden, 1968–2012," Demography, Springer;Population Association of America (PAA), vol. 56(4), pages 1389-1425, August.
    4. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2017. "Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 848-902.
    5. Manan Roy, 2014. "How well does the U.S. Government provide health insurance for infants?," Empirical Economics, Springer, vol. 46(1), pages 253-284, February.
    6. Kreider, Brent & Pepper, John V. & Roy, Manan, 2018. "Does the Women, Infants, and Children Program (WIC) Improve Infant Health Outcomes?," ISU General Staff Papers 201805010700001055, Iowa State University, Department of Economics.
    7. Jason Fletcher, 2012. "The Effects of First Occupation on Long Term Health Status: Evidence from the Wisconsin Longitudinal Study," Journal of Labor Research, Springer, vol. 33(1), pages 49-75, March.
    8. Bhashkar Mazumder, 2008. "Does education improve health? A reexamination of the evidence from compulsory schooling laws," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 32(Q II), pages 2-16.
    9. Warren, John Robert & Knies, Laurie & Haas, Steven & Hernandez, Elaine M., 2012. "The impact of childhood sickness on adult socioeconomic outcomes: Evidence from late 19th century America," Social Science & Medicine, Elsevier, vol. 75(8), pages 1531-1538.
    10. Heflin, Colleen M. & Acevedo, Sharon Kukla, 2011. "Non-income effects of welfare receipt on early childhood cognitive scores," Children and Youth Services Review, Elsevier, vol. 33(5), pages 634-643, May.
    11. Pantyley Viktoriya, 2017. "Human capital of the child population and its selected determinants: Case study of Lviv city, Ukraine," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 37(37), pages 77-93, September.
    12. von Hinke Kessler Scholder S, 2009. "Genetic Markers as Instrumental Variables: An Application to Child Fat Mass and Academic Achievement," Health, Econometrics and Data Group (HEDG) Working Papers 09/25, HEDG, c/o Department of Economics, University of York.
    13. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    14. Jason M. Fletcher & Jody L. Sindelar, 2009. "Estimating Causal Effects of Early Occupational Choice on Later Health: Evidence Using the PSID," NBER Working Papers 15256, National Bureau of Economic Research, Inc.
    15. Manan Roy, 2011. "How Well Does the U.S. Government Provide Health Insurance?," Departmental Working Papers 1102, Southern Methodist University, Department of Economics.
    16. Hector Cebolla-Boado & Leire Salazar, 2016. "Differences in perinatal health between immigrant and native-origin children: Evidence from differentials in birth weight in Spain," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(7), pages 167-200.
    17. Baum II, Charles L. & Ruhm, Christopher J., 2009. "Age, socioeconomic status and obesity growth," Journal of Health Economics, Elsevier, vol. 28(3), pages 635-648, May.
    18. Richard Akresh & Redstone Akresh, 2011. "Using Achievement Tests to Measure Language Assimilation and Language Bias among the Children of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 647-667.
    19. 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.
    20. Dhanushka Thamarapani & Marc Rockmore & Willa Friedman, 2018. "The Educational and Fertility Effects of Sibling Deaths," CINCH Working Paper Series 1801, Universitaet Duisburg-Essen, Competent in Competition and Health.
    21. Bengtsson, Tommy & Helgertz, Jonas, 2015. "The Long Lasting Influenza: The Impact of Fetal Stress during the 1918 Influenza Pandemic on Socioeconomic Attainment and Health in Sweden 1968-2012," IZA Discussion Papers 9327, Institute of Labor Economics (IZA).
    22. Buckles, Kasey, 2017. "Maternal Socio-Economic Status and the Well-Being of the Next Generation(s)," IZA Discussion Papers 10714, Institute of Labor Economics (IZA).

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