IDEAS home Printed from https://ideas.repec.org/p/uct/uconnp/2019-18.html
   My bibliography  Save this paper

Parental Economic Shocks and Infant Health: The Effect of Import Competition in the U.S

Author

Listed:
  • Patralekha Ukil

    (University of Connecticut)

Abstract

Much of the literature providing causal evidence of parental economic conditions on infant health has focused on the impact of positive economic or income shocks, as opposed to negative ones. The concept of loss aversion makes it clear that individuals react differently when facing potential losses compared to potential gains, and that losses tend to be twice as psychologically powerful as gains. Moreover, long-term and persistent negative shocks such as those arising through increasing import competition could have different effects on health compared to reasonably temporary shocks such as lay-offs, recessions or business cycle fluctuations. This paper examines the effect of parental or household economic shocks on infant health by exploiting the increasing import competition from China between 1990 and 2000 on U.S. local labor markets as a plausibly exogenous source of variation in economic conditions. It also utilizes additional variation stemming from parental age within the local labor markets, thereby controlling for local labor market trends and allowing the analysis of heterogeneous impacts. Results indicate that commuting zones in the U.S. which experienced increased import penetration over time also experienced an increased incidence of low birthweight and a decrease in average birthweight. Further analyses show that the above results are driven by relatively younger parents as opposed to older parents.

Suggested Citation

  • Patralekha Ukil, 2019. "Parental Economic Shocks and Infant Health: The Effect of Import Competition in the U.S," Working papers 2019-18, University of Connecticut, Department of Economics.
  • Handle: RePEc:uct:uconnp:2019-18
    as

    Download full text from publisher

    File URL: https://media.economics.uconn.edu/working/2019-18.pdf
    File Function: Full text
    Download Restriction: no

    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. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    3. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    4. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    5. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2007. "From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 409-439.
    6. Hilary Hoynes & Doug Miller & David Simon, 2015. "Income, the Earned Income Tax Credit, and Infant Health," American Economic Journal: Economic Policy, American Economic Association, vol. 7(1), pages 172-211, February.
    7. repec:pri:cheawb:adriana_booms.pdf is not listed on IDEAS
    8. Katrine V. Løken & Magne Mogstad & Matthew Wiswall, 2012. "What Linear Estimators Miss: The Effects of Family Income on Child Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 1-35, April.
    9. Janet Currie, 2011. "Inequality at Birth: Some Causes and Consequences," American Economic Review, American Economic Association, vol. 101(3), pages 1-22, May.
    10. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    11. Hoynes, Hilary & Page, Marianne & Stevens, Ann Huff, 2011. "Can targeted transfers improve birth outcomes?: Evidence from the introduction of the WIC program," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 813-827, August.
    12. Anna Aizer & Shari Eli & Joseph Ferrie & Adriana Lleras-Muney, 2016. "The Long-Run Impact of Cash Transfers to Poor Families," American Economic Review, American Economic Association, vol. 106(4), pages 935-971, April.
    13. Mocan, Naci & Raschke, Christian & Unel, Bulent, 2015. "The impact of mothers’ earnings on health inputs and infant health," Economics & Human Biology, Elsevier, vol. 19(C), pages 204-223.
    14. William N. Evans & Craig L. Garthwaite, 2014. "Giving Mom a Break: The Impact of Higher EITC Payments on Maternal Health," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 258-290, May.
    15. Rossin-Slater, Maya, 2013. "WIC in your neighborhood: New evidence on the impacts of geographic access to clinics," Journal of Public Economics, Elsevier, vol. 102(C), pages 51-69.
    16. Rosemary Hyson & Janet Currie, 1999. "Is the Impact of Health Shocks Cushioned by Socioeconomic Status? The Case of Low Birthweight," American Economic Review, American Economic Association, vol. 89(2), pages 245-250, May.
    17. David H. Autor & David Dorn & Gordon H. Hanson, 2015. "Untangling Trade and Technology: Evidence from Local Labour Markets," Economic Journal, Royal Economic Society, vol. 0(584), pages 621-646, May.
    18. David Autor & David Dorn & Gordon Hanson, 2019. "When Work Disappears: Manufacturing Decline and the Falling Marriage Market Value of Young Men," American Economic Review: Insights, American Economic Association, vol. 1(2), pages 161-178, September.
    19. Eisenberg Daniel & Golberstein Ezra & Hunt Justin B, 2009. "Mental Health and Academic Success in College," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-37, September.
    20. Carlson, Kyle, 2015. "Fear itself: The effects of distressing economic news on birth outcomes," Journal of Health Economics, Elsevier, vol. 41(C), pages 117-132.
    21. Jessamyn Schaller & Mariana Zerpa, 2019. "Short-Run Effects of Parental Job Loss on Child Health," American Journal of Health Economics, MIT Press, vol. 5(1), pages 8-41, Winter.
    22. Douglas Almond & Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2011. "Inside the War on Poverty: The Impact of Food Stamps on Birth Outcomes," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 387-403, May.
    23. repec:uwp:jhriss:v:54:y:2019:i:1:p:37-78 is not listed on IDEAS
    24. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    25. Hilary Hoynes & Diane Whitmore Schanzenbach & Douglas Almond, 2016. "Long-Run Impacts of Childhood Access to the Safety Net," American Economic Review, American Economic Association, vol. 106(4), pages 903-934, April.
    26. repec:wly:hlthec:v:28:y:2019:i:1:p:44-56 is not listed on IDEAS
    27. repec:pri:cheawb:adriana_booms is not listed on IDEAS
    28. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    29. Lindo, Jason M., 2011. "Parental job loss and infant health," Journal of Health Economics, Elsevier, vol. 30(5), pages 869-879.
    30. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
    31. repec:ucn:wpaper:10197/317 is not listed on IDEAS
    32. Marianne Page & Jessamyn Schaller & David Simon, 2019. "The Effects of Aggregate and Gender-Specific Labor Demand Shocks on Child Health," Journal of Human Resources, University of Wisconsin Press, vol. 54(1), pages 37-78.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Infant health; Birthweight; Parental Income; International Trade; Income Inequality; Import Competition; Manufacturing Decline;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uct:uconnp:2019-18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark McConnel). General contact details of provider: http://edirc.repec.org/data/deuctus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.