Money transfer and birth weight: Evidence from the Alaska permanent fund dividend

Wankyo Chung, Hyungserk Ha, Beomsoo Kim

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)576-590
Number of pages15
JournalEconomic Inquiry
Volume54
Issue number1
DOIs
Publication statusPublished - 2016 Jan 1

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Income
Birth weight
Dividends
Health
Low birth weight
Health outcomes
Causality
Income effect
Economic resources

ASJC Scopus subject areas

  • Economics and Econometrics
  • Business, Management and Accounting(all)

Cite this

Money transfer and birth weight : Evidence from the Alaska permanent fund dividend. / Chung, Wankyo; Ha, Hyungserk; Kim, Beomsoo.

In: Economic Inquiry, Vol. 54, No. 1, 01.01.2016, p. 576-590.

Research output: Contribution to journalArticle

Chung, Wankyo ; Ha, Hyungserk ; Kim, Beomsoo. / Money transfer and birth weight : Evidence from the Alaska permanent fund dividend. In: Economic Inquiry. 2016 ; Vol. 54, No. 1. pp. 576-590.
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