The impact of eliminating a child benefit on birth timing and infant health

Cristina Borra, Libertad Gonzalez and Almudena Sevilla ()

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We study the effects of the cancellation of a sizeable child benefit in Spain on birth timing and neonatal health. In May 2010, the government announced that a 2,500-euro universal "baby bonus" would stop being paid to babies born starting January 1, 2011. We use detailed micro data from birth certificates from 2000 to 2011, and find that more than 2,000 families were able to anticipate the date of birth of their babies from (early) January 2011 to (late) December 2010 (for a total of about 10,000 births a week nationally). This shifting took place in part via an increase as well as an anticipation of pre-programmed c-sections, seemingly mostly in private clinics. We find that this shifting of birthdates resulted in a significant increase in the number of borderline low birth weight babies, as well as a peak in neonatal mortality. The results suggest that announcement effects are important, and that families and health professionals may face effective trade-offs when deciding on the timing (and method) of birth.

Keywords: timing of births; benefit elimination; announcement effects; infant health. (search for similar items in EconPapers)
JEL-codes: H31 I10 J13 (search for similar items in EconPapers)
Date: 2013-07
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Related works:
Working Paper: The Impact of Eliminating a Child Benefit on Birth Timing and Infant Health (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1382

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