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Does a pint a day affect your child's pay? The effect of prenatal alcohol exposure on adult outcomes

  • Peter Nilsson

This paper utilizes a Swedish alcohol policy experiment conducted in the late 1960s to identify the impact of prenatal alcohol exposure on educational attainments and labor market outcomes. The experiment started in November 1967 and was prematurely discontinued in July 1968 due to a sharp increase in alcohol consumption in the experimental regions, particularly among youths. Using a difference-in-difference-in-differences estimation strategy we find that around the age of 30 the cohort in utero during the experiment has substantially reduced educational attainments, lower earnings and higher welfare dependency rates compared to the surrounding cohorts. The results indicate that investments in early-life health have far-reaching effects on economic outcomes in later life.

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File URL: http://cemmap.ifs.org.uk/wps/cwp2208.pdf
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Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP22/08.

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Date of creation: Aug 2008
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Handle: RePEc:ifs:cemmap:22/08
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  1. Sandra E. Black & Paul Devereux & Kjell G. Salvanes, 2007. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," Working Papers 200718, Geary Institute, University College Dublin.
  2. Janet Currie & Rosemary Hyson, 1999. "Is the Impact of Health Shocks Cushioned by Socioeconomic Status? The Case of Low Birthweight," NBER Working Papers 6999, National Bureau of Economic Research, Inc.
  3. Douglas Almond & Lena Edlund & Mårten Palme, 2009. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," The Quarterly Journal of Economics, MIT Press, vol. 124(4), pages 1729-1772, November.
  4. Michael J. Moore & Philip J. Cook, 1995. "Habit and Heterogeneity in the Youthful Demand for Alcohol," NBER Working Papers 5152, National Bureau of Economic Research, Inc.
  5. Michael Grossman & Sara Markowitz, 2002. "I Did What Last Night?!!! Adolescent Risky Sexual Behaviors and Substance Use," NBER Working Papers 9244, National Bureau of Economic Research, Inc.
  6. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
  7. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
  8. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  9. Gerard J. van den Berg & Maarten Lindeboom & France Portrait, 2006. "Economic Conditions Early in Life and Individual Mortality," American Economic Review, American Economic Association, vol. 96(1), pages 290-302, March.
  10. Marco Francesconi, 2008. "Adult Outcomes for Children of Teenage Mothers," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(1), pages 93-117, 03.
  11. Hunt, Jennifer, 2006. "Do Teen Births Keep American Crime High?," Journal of Law and Economics, University of Chicago Press, vol. 49(2), pages 533-66, October.
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