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Recessions are Not Good for Your Health: the Counter-Cyclical Health Outcomes Revisited

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  • Asali, Muhammad

Abstract

The net, positive, effect of unemployment at conception on birth outcomes in developed countries is likely overestimated in the literature. This is the consequence of ignoring the effects of unemployment during pregnancy. Using data from Israel, we not only confirm this finding but also find that the harmful effects of unemployment in the third trimester are large enough to offset any preceding positive effects. Stress and nutritional deficiencies due to economic contractions during pregnancy are at least as important as the positive self-selection at conception. This finding calls for policy intervention to support pregnant women even in developed countries.

Suggested Citation

  • Asali, Muhammad, 2015. "Recessions are Not Good for Your Health: the Counter-Cyclical Health Outcomes Revisited," MPRA Paper 78204, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:78204
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    References listed on IDEAS

    as
    1. Rajeev Dehejia & Adriana Lleras-Muney, 2004. "Booms, Busts, and Babies' Health," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 1091-1130.
    2. Grant Miller & B. Piedad Urdinola, 2010. "Cyclicality, Mortality, and the Value of Time: The Case of Coffee Price Fluctuations and Child Survival in Colombia," Journal of Political Economy, University of Chicago Press, vol. 118(1), pages 113-155, February.
    3. repec:pri:cheawb:adriana_booms.pdf is not listed on IDEAS
    4. Carlos Bozzoli & Climent Quintana-Domeque, 2014. "The Weight of the Crisis: Evidence From Newborns in Argentina," The Review of Economics and Statistics, MIT Press, vol. 96(3), pages 550-562, July.
    5. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 1121-1167.
    6. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 617-650.
    7. Sarah Baird & Jed Friedman & Norbert Schady, 2011. "Aggregate Income Shocks and Infant Mortality in the Developing World," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 847-856, August.
    8. Muhammad Asali, 2010. "Jewish-Arab Wage Gap: What Are The Causes?," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(4), pages 367-380.
    9. repec:pri:cheawb:adriana_booms is not listed on IDEAS
    10. Bhalotra, Sonia, 2010. "Fatal fluctuations? Cyclicality in infant mortality in India," Journal of Development Economics, Elsevier, vol. 93(1), pages 7-19, September.
    11. Cruces, Guillermo & Glüzmann, Pablo & Calva, Luis Felipe López, 2012. "Economic Crises, Maternal and Infant Mortality, Low Birth Weight and Enrollment Rates: Evidence from Argentina’s Downturns," World Development, Elsevier, vol. 40(2), pages 303-314.
    12. Schady, Norbert & Smitz, Marc-Francois, 2010. "Aggregate economic shocks and infant mortality: New evidence for middle-income countries," Economics Letters, Elsevier, vol. 108(2), pages 145-148, August.
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    More about this item

    Keywords

    recession; health outcomes; birth weight; developed countries;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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