The Effects of Aggregate and Gender-Specific Labor Demand Shocks on Child Health

We estimate the relationship between local labor market opportunities and child health using state unemployment rates and demand-induced changes in mothers’ and fathers’ employment opportunities. In contrast with studies of adult health, we find little evidence that aggregate economic conditions are correlated contemporaneously with children’s health. However, we find important patterns by gender. In particular, improvements in women’s employment opportunities are consistently associated with worse child health, while better labor market conditions for men have positive effects. These patterns suggest that both family income and maternal time are important inputs to child health.