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

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.

Economic Fluctuations and Child Health: How Well Children’s Health Needs are Met in Nigeria

“…It shows that the past economic fluctuation has significant effect on the child's chances of survival. These findings are similar that of Maruthappu, Watson, Watkins, Zeltner, Raine and Atu [9]; Paxson and Schady [12]; Chung and Muntaner [10], who have investigated the relationship between economic fluctuations and child mortality rates. The findings of this study are contrary to the procyclical relationship found by Miller and Urdinola [14]; Dehejia and Lliras-Muney [15] and Abdala, F., R. Geldstein and S. Mychaszula [21].…”

“…Conley and Springer [10] equally found that state spending, which varied according to the institutional structure of the welfare state, negatively affected infant mortality. Studies like Paxson and Schady [11], and Asali [12] equally found negative relationship between macroeconomic variables and infant mortality rates.…”