This paper studies the potential positive externality of unemployment insurance (UI) on infant birth outcomes. Taking advantage of variations of UI benefits across states and over time, we find that UI improves birth outcomes, including mean birth weight, full-term birth weight, low birth weight, fetal growth, and preterm birth. If all states apply the UI schedule of the most generous state (Massachusetts), the average birth weight increases by roughly 19 g.
Keywords: birth outcomes; externality; fetal origin hypothesis; health utilization; prenatal care; social insurance; unemployment insurance.
© 2020 John Wiley & Sons Ltd.