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Fear itself: The effects of distressing economic news on birth outcomes

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  • Carlson, Kyle

Abstract

I use new administrative data on mass layoffs and plant closings to study the effects of distressing economic news. Exposure to stressful events during pregnancy can impair fetal development. I find that announcement of impending job losses leads to a transient decrease in the mean birth weight within the firm’s county 1–4 months before the job losses. A loss of 500 jobs corresponds roughly to a decrease of 15–20 grams and 16 percent greater risk of low birth weight. Further analyses show that the initial effect results from curtailment of gestation, while slower intrauterine growth plays a later role.

Suggested Citation

  • Carlson, Kyle, 2014. "Fear itself: The effects of distressing economic news on birth outcomes," MPRA Paper 56560, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56560
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    More about this item

    Keywords

    health; birth weight; gestation; layoffs; warn; stress; prenatal;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J00 - Labor and Demographic Economics - - General - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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