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Intergenerational Transmission in Health: Causal estimates from fixed effects instrumental variables models for two cohorts of Australian children

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  • Huong Thu Le

    (Queensland University of Technology)

  • Ha Trong Nguyen

    (Bankwest Curtin Economics Centre, Curtin University)

Abstract

This paper contributes to an emerging body of literature on intergenerational transmission in health by presenting the first causal estimates on the impact of maternal mental health on child health. The potential endogeneity of maternal mental health is dealt with by utilising nationally representative panel data from two cohorts and individual fixed effects instrumental variables models. While previous literature has found evidence supporting detrimental effects of poor maternal mental health on child health our results found no evidence to support this. Our results hold irrespective of whether we look at the contemporaneous or intertemporal effects. We also found little differential impact based on the gender or age of the child and the levels of maternal education or household income.These results demonstrate that failing to account for endogeneity of maternal mental health could over-estimate the harmful impact of poor maternal mental health on child health. Our findings are robust to a battery of sensitivity and specification tests.

Suggested Citation

  • Huong Thu Le & Ha Trong Nguyen, 2015. "Intergenerational Transmission in Health: Causal estimates from fixed effects instrumental variables models for two cohorts of Australian children," Bankwest Curtin Economics Centre Working Paper series WP1509, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    • Handle: RePEc:ozl:bcecwp:wp1509
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    Cited by:

    1. Huong Thu Le & Ha Trong Nguyen, 2017. "Parental health and children's cognitive and noncognitive development: New evidence from the longitudinal survey of Australian children," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1767-1788, December.
    2. Ha Trong Nguyen & Luke Brian Connelly, 2018. "Out of sight but not out of mind: Home countries' macroeconomic volatilities and immigrants' mental health," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 189-208, January.

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    Keywords

    maternal mental health;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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