Home Prices, Fertility, and Early-Life Health Outcomes

50 Pages Posted: 7 Jul 2020 Last revised: 23 Jul 2023

See all articles by N. Meltem Daysal

N. Meltem Daysal

University of Southern Denmark

Michael Lovenheim

Cornell University - Department of Policy Analysis and Management; National Bureau of Economic Research (NBER)

Nikolaj Siersbæk

Department of Business and Economics, University of Southern Denmark

David Wasser

Cornell University

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Date Written: July 2020

Abstract

We estimate the effect of housing price changes on fertility and early-life child health in Denmark. Using rich population register data among women aged 20-44 who own a home, we find that for each 100,000 DKK increase in home prices (equivalent to $12,000), the likelihood of giving birth increases by 0.27 percentage points or 2.32%. These estimates are similar to findings from the US per dollar of home price change, which is surprising given the strong pro-natalist policies and generous government programs in Denmark. We also present the first estimates of the effect of home prices on infant health. Our findings indicate that housing price increases lead to better child health at birth in terms of low birth weight and prematurity, however most of these effects reflect changes in the composition of births. There is no evidence of an effect on health during the first five years of life. These findings are consistent with a lack of credit constraints among homeowner families and with both children and child health being normal goods that are similarly-valued in the US and Denmark.

Suggested Citation

Daysal, N. Meltem and Lovenheim, Michael and Siersbæk, Nikolaj and Wasser, David, Home Prices, Fertility, and Early-Life Health Outcomes (July 2020). NBER Working Paper No. w27469, Available at SSRN: https://ssrn.com/abstract=3644070

N. Meltem Daysal (Contact Author)

University of Southern Denmark

Campusvej 55
DK-5230 Odense, 5000
Denmark

Michael Lovenheim

Cornell University - Department of Policy Analysis and Management ( email )

Ithaca, NY
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Nikolaj Siersbæk

Department of Business and Economics, University of Southern Denmark ( email )

Campusvej 55
DK-5230 Odense
Denmark
+45 65 50 76 91 (Phone)

HOME PAGE: http://www.sdu.dk

David Wasser

Cornell University

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