publication . Article . 2010

The Permanent Effects of Recessions on Child Health: Evidence from Peru

Jorge M. Agüero; Martín Valdivia;
Open Access
  • Published: 01 Jan 2010 Journal: Estudios Económicos, volume 25, issue 1, pages 247-274
We explore the permanent effects that recessions have on health-related outcomes of mothers and children in Peru. To account for possible self-selection in giving birth during recessions, we compare the infant mortality rates of siblings born in different phases of the economic cycle. A 1 percent decline in GDP per capita is associated with an increase in infant mortality rates between 0.30 and 0.39 percent. We find evidence that recessions also have a negative effect on long-term health measures for surviving children. The additional negative effect found on prenatal care suggests that the permanent effects start while children are in-utero.
free text keywords: economic crises, early childhood development, health, Peru, jel:I12, jel:J13, jel:J18
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