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

Kyle Carlson1

  • 1Division of the Humanities and Social Sciences, MC 228-77, California Institute of Technology, 1200 E. California Blvd., Pasadena, CA 91106, United States.

Journal of Health Economics
|March 22, 2015
PubMed

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 one to four months before the job losses. A loss of 500 jobs corresponds roughly to a decrease of 15-20g and 16 percent greater risk of low birth weight. Layoffs announced late in pregnancy are most strongly linked to decreased birth outcomes.

Keywords:
Birth outcomesBirth weightGestational ageHealthStress

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