Money Transfer and Birth Weight: A Causal Link from Alaska
Richer and more educated individuals are known to live longer than poorer and less educated ones. This paper employs the first two years distribution of Alaska Permanent Fund Dividend and examines health outcomes of their newborns. The results indicate that income has a significant positive effect on birth weight but that its magnitude is modest. An income shock in the amount of $3,465 increases birth weight by 13 grams, but does not show any significant impact on low birth weight. We find substantially decreased female labor supply among pregnant women but no significant response of prenatal care.
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