The Labor Market and Health Impacts of Reducing Cesarean Section Deliveries

We study an intervention that reduced cesarean deliveries among low-risk first-time mothers, using California birth records linked to earnings data. Exposed mothers were 8% less likely to have a c-section, with no adverse health effects. We find suggestive evidence that they were more likely to return to their pre-birth employer and had higher within-firm earnings rankings in the quarter post-birth. These labor market gains fade over time. However, mothers who had a second child were less likely to have a c-section or preterm delivery, suggesting our estimated effects from avoiding a first c-section may be lower bounds on total gains.