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

Journal of Health Economics
Kyle Carlson

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 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.

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Citations

May 31, 2016·Current Epidemiology Reports·Claire Margerison-ZilkoJanelle Downing
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Jan 26, 2021·Economics and Human Biology·Andrew E ClarkNicholas Rohde

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