S-Space Graduate School of Public Health (보건대학원) Dept. of Public Health (보건학과) Journal Papers (저널논문_보건학과)
Money Transfer and Birth Weight: Evidence from the Alaska Permanent Fund Dividend
- Chung, Wankyo; Ha, Hyungserk; Kim, Beomsoo
- Issue Date
- Economic Inquiry, Vol.54 No.1, pp. 576–590
- The positive relationship between income and health is well established. However, the direction of causality remains unclear: do economic resources influence health, or vice versa? Exploiting a new source of exogenous income variation, this study examines the impact of the Alaska Permanent Fund Dividend (APFD) on newborns' health outcomes. The results show that income has a significantly positive, but modest effect on birth weight. We find that an additional $1,000 ($2,331 in 2011 dollars) increases birth weight by 17.7 g and substantially decreases the likelihood of a low birth weight (a decrease of around 14% of the sample mean). Furthermore, the income effect is higher for less-educated mothers. Based on a gestation-weight profile in the sample, increased gestation owing to the APFD could explain a maximum of 34%–57% of the measured weight increase, although we are unable to examine all the potential mechanisms. (JEL I10, I18, I12)
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