The Weight of the Crisis: Evidence from Newborns in Argentina
Argentina hit world news headlines in 2002 due to the largest debt-default in history and a sudden economic collapse reminiscent of economic statistics from the Great Depression. In this article, we focus on other consequences of the crisis that are not so obvious, but that may linger for decades on. Combining macroeconomic indicators with the Argentine national registry of live births, approximately 1.9 million live births occurring between 2001 and 2003, we show that the crisis led to an average birth weight loss of 30 grams. Our estimate is robust to different identification strategies. This deterioration in birth weight occurred in just about 6 months, and represents one sixth of the difference in average birth weight between American and Pakistani babies. We also find that the crisis affected particularly the weight of babies born from low-socioeconomic status mothers. In an attempt to estimate the long-lasting economic cost of the crisis, we simulate the average loss of future individual earnings due to the reduction in average birth weight: about 500 US dollars per live birth in present value.
|Length:||28 , Tab. p.|
|Date of creation:||2010|
|Date of revision:|
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- Savanti, Maria Paula & Patrinos, Harry Anthony, 2005. "Rising returns to schooling in Argentina, 1992-2002 : productivity or credentialism?," Policy Research Working Paper Series 3714, The World Bank.
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- Morten O. Ravn & Harald Uhlig, 2002. "On adjusting the Hodrick-Prescott filter for the frequency of observations," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 371-375.
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