The Impact of Eliminating a Child Benefit on Birth Timing and Infant Health

46 Pages Posted: 22 Feb 2014

See all articles by Cristina Borra

Cristina Borra

University of Seville

Libertad Gonzalez

Universitat Pompeu Fabra; Barcelona Graduate School of Economics (Barcelona GSE); IZA Institute of Labor Economics

Almudena Sevilla Sanz

University of Oxford

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 on or after January 1st, 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 9,000 births a week nationally). This shifting of deliveries led to a significant increase in the number of low birth weight babies, as well as a peak in neonatal mortality. These results suggest that announcement effects are important in shaping economic decisions and outcomes. They also provide new, credible evidence highlighting the negative health consequences of scheduling births for non-medical reasons.

Keywords: incentives, policy change, fertility, child health

JEL Classification: H00, H30, J00, J13, J17

Suggested Citation

Borra, Cristina and Gonzalez, Libertad and Sevilla Sanz, Almudena, The Impact of Eliminating a Child Benefit on Birth Timing and Infant Health. IZA Discussion Paper No. 7967, Available at SSRN: https://ssrn.com/abstract=2399807 or http://dx.doi.org/10.2139/ssrn.2399807

Cristina Borra (Contact Author)

University of Seville ( email )

Avda. del Cid s/n
E-41092 Sevilla, Sevilla 41004
Spain

Libertad Gonzalez

Universitat Pompeu Fabra ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain

Barcelona Graduate School of Economics (Barcelona GSE)

Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Almudena Sevilla Sanz

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

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