Mortality and business cycles by level of development: evidence from Mexico

Abstract

We investigate the relationship between mortality and business cycles within Mexico, where development varies significantly. We exploit this variation by separately analyzing the top ten and bottom ten developed states for the period 1993-2004. We find that while overall mortality is procyclical nationally and in the top ten states, it is countercyclical in the bottom ten. Further, we show that in the top ten states mortality due to non communicable conditions is procyclical, while in the bottom ten mortality due to non communicable conditions and infectious and parasitic diseases are countercyclical. Our results suggest that the relationship between mortality and business cycles may vary by level of development.