Measuring the Impact of Microfinance on Child Health Outcomes in Indonesia

Microfinance has become a staple of modern development policy as a means to facilitate anything from gender equality to growth. It can facilitate the sharing of health-related information among parents, promote the bargaining power of women in the household, aid in the development of important health-related infrastructure, and help households smooth consumption in the wake of unexpected economic shocks. Using data from the Indonesian Family Life Survey (1993–2000), we find that the presence of microfinance institutions in communities significantly improves the health of children.     

Parental Education and Child Health: Evidence from China*

This paper examines the effect of parental, household and community character‐istics on the health of children in China. We find that birth order, death of elder siblings, use of prenatal care and alcohol consumption by the mother when pregnant have statistically significant effects on the health of children. Although parental education does not have a significant direct effect on child health, it does affect mothers’ behavior during pregnancy and inflfluences the use of health inputs, indirectly impacting the health of children. The research findings have important implications for both family planning programs and broader social policies in China.     

Motivation of Parent–Child Co‐residence Behavior: Evidence from the China Health and Retirement Longitudinal Study

This paper examines the motivations of parent‐child co‐residence behavior in China using data from the China Health and Retirement Longitudinal Study. We test three possible motives: social norms, self‐interest and altruism. We find that social norms play an important role in household co‐residence behavior, showing that the belief that “sons take care of parents” is strong, and children in different birth orders take different responsibilities. Taking the one‐child policy as a natural experiment, we compared co‐residence behavior between only‐child and multi‐child families. This allowed us to test whether children in multi‐child families with wealthier parents more often co‐reside in order to compete for a bequest. We find that parents' wealth is more appealing to children in multi‐child families. The results support the life cycle theory that co‐residence decisions are motivated by self‐interest. We also find some evidence of altruism when parents and children make co‐residence decisions. These findings provide some insights for designing future elder‐support policies in China.     

The Role of Economic Shocks on Health: Evidence from German Reunification

Sudden economic shocks impact the everyday lives of people from one day to the next. A number of studies have examined the association between economic fluctuations and health; however, no consensus on the nature of this relationship has been established. By exploiting the dramatic economic fluctuations following the German Reunification of 1990, which included a sudden change from a socialist to a capitalist system in East Germany, this study examines the association between broad negative economic shocks and health. The article finds that increases in state unemployment rates are associated with large and statistically significant declines in health outcomes. Estimates are stronger for people who became unemployed shortly after reunification, for low‐income individuals, and for East Germans, a group confronted with larger economic fluctuations. When examining potential mechanisms that could explain the observed health deteriorations, the study finds significant reductions in exercise frequency and increases in economic uncertainty and overall stress.     

Price variability and price convergence: Evidence from Indonesia

This paper evaluates price variability and price convergence in Indonesia. Using price indices of 35 products in 45 cities from January 2002 to April 2008, this study shows that, during the observed period, prices in Indonesia converged to the ‘relative’ law of one price. The price variability of one product across cities is found to be smaller than the price variability of all products within a city. Transportation costs and the level of development matter to price variability. This study also reveals that the average speed of convergence, which is measured by the half-life, for perishable goods is about 9 months, non-perishable goods 32–36 months, and services 18–19 months, while the median of the half-life of all products is about 16–17 months. The speed of convergence depends on the initial price difference, but not the distance between cities.     

Prenatal Smoking Cessation and Infant Health: Evidence from Sibling Births

This article uses a large data set of sibling births to examine when mothers must quit smoking in pregnancy to deliver healthy babies. It applies sibling fixed effects models to provide robust evidence that smoking cessation in the first trimester has a negligible effect on infant health, but cessation as late as second trimester or smoking throughout pregnancy is associated with substantially lower birth weights and higher risks of delivering low birth weight babies. In particular, about two thirds of the total detrimental smoking impact on birth outcomes occurs in the second trimester. Therefore, reallocating resources on prenatal smoking cessation towards the first trimester can lead to a significant efficiency gain. This study also shows when the timing information of prenatal smoking cessation is improperly used, it will introduce a new nontrivial downward bias in estimating the causality between the conventionally used group measure “prenatal smoker” and infant health.     

Dynamics of Child Malnutrition in Rural and Small‐Town Ethiopia

Improving the status of malnourished children, and preventing children from becoming malnourished, lies at the heart of several of the Sustainable Development Goals. While many cross‐sectional studies examine correlates of stunting, they largely cannot identify drivers of change in stunting. We use two waves of panel data from Ethiopia and incrementally larger sets of fixed effects to control for time‐variant observable characteristics and time‐invariant unobservable characteristics. After controlling for these potential confounders, our analysis reveals that many factors that are associated with stunting in the cross‐section do not impact stunting dynamics. We also estimate individual fixed‐effects regressions, separately, according to baseline stunting status. We find evidence suggesting that while improved societal conditions drive many children out of a stunted state, certain exogenous factors may lead previously healthy children to become stunted. Overall, policymakers and practitioners would be wise to consult research utilising both cross‐sectional and panel data analyses in order to more effectively target already stunted children as well as vulnerable children who may be at risk of becoming stunted.     

Income Inequality and Health: Do the Equivalence Scales Matter?

The aim of this paper is to explore the relationship between income inequality and health in the European Union countries using new data from the European Community Household Panel (ECHP). The heterogeneity of the households has been approached using different equivalence scales. A variety of different model specifications were tried using different dependent variables such as life expectancy at birth and child mortality. The results give support to the influence of income inequality on health indicators using aggregate data and panel techniques, and show the sensitivity of the Gini index to the equivalence scale considered.     

The minimum wage,exports, and firm performance: Evidence from Indonesia

This paper examines the interrelationship between changes in the provincial minimum wage, firms’ export behavior, and firms’ performance in Indonesia. In this regard, we apply a two-stage least squares regression analysis to detailed firm-level data of manufacturing enterprises during 2002–2014. We find that an increase in the minimum wage is associated with a decrease in a firm’s employment and productivity, but increase in its probability of exporting and markup. We also use the 2012 minimum wage reform in Indonesia to conduct a difference-in-difference analysis to further mitigate the potential endogeneity of minimum wage regulation. Our findings are generally robust to alternative estimation methods. Moreover, quantile regression results indicate that the average wage, firm size, and the education level of workers also affect the predictions. Above all, this study suggests that Indonesian exports and the country’s comparative advantage in international markets are not negligibly affected by higher labor costs caused by the growth in the minimum wage.     

Timing is Everything: The Impact of School Lunch Length on Children's Body Weight

The large number of overweight children in the United States has prompted school administrators and policy makers to identify practices in schools that contribute to unhealthy weight outcomes for children and develop strategies to prevent further increases. Advocates for school nutrition reform have suggested that it is important for children to have an adequate amount of time to eat meals in school in order to maintain a healthy weight. This article examines whether the length of time children are given to eat lunch in school has an impact on their weight. I find evidence that an increase in lunch length reduces the probability a child is overweight, and this finding is robust across various econometric specifications, including a two‐sample instrumental variable model and difference‐in‐differences model that account for the potential endogeneity of lunch length.     

Short‐run marginal medical costs from booze and butts: Evidence from the states

This article uses a panel data set of U.S. states over the 1980 to 2007 period to estimate the demands for medical care, cigarettes, and beer. The estimation process generates own‐price, income, and cross‐price elasticities for all three goods. Implied per capita beer and cigarette consumption elasticities of per capita health care expenditures, suggested by our baseline estimates, are 0.83 and 0.14, respectively. These results are robust to a number of specification tests. Simulations suggest that yearly marginal medical costs amount to approximately $12 per bottle and 27 cents per cigarette in the short run (in 2012 dollars). These results are likely to be driven by the much larger corresponding increases in the consumption of binge drinkers and heavy smokers.

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Socioeconomic inequalities in death from past to present: An introduction

In the early postwar period, improvements in life expectancy in many Western countries made health authorities, health scientists and politicians believe that social differences in mortality converged. The assumption was that inequality, when measured as death rates, was on steady decline, possibly even on the brink of disappearing. The question is then, how far back in time can social differences in mortality be traced? Can they be traced back to the agricultural society or are they a result of industrialization? Whether or not these differences are the result of the industrial revolution became a lively debated issue at the time and has continued to be discussed to date. While many scholars have taken a Malthusian view, that mortality in the past was largely determined by economic factors, others argue that mortality was determined by non-economic factors, leaving little room for a social gradient in mortality. Due to lack of coherent data covering long time periods, our knowledge has been based on bits and pieces of evidence from various locations and time periods. The evidence used is not only fragmentary but furthermore only partly comparable as different definitions of social class and mortality have been used.Here we present results from seven new studies of locations in Western and Southern Europe, the US and Canada for which individual-level longitudinal data exists during the industrialization period. Most of these studies cover also the first part of the twentieth century, a period for which such microdata hitherto has largely been lacking. Taken together, they have a wide geographic coverage and a very long time horizon. Based on these studies, we argue that social differences appeared both long before and long after the industrial breakthrough, in both cases implying that these differences are not directly related to industrialization. We also argue that the association between income and mortality observed today most likely is a recent phenomenon. Overall, a causal link between income and mortality is put into question.     

Economic Freedom and Exercise: Evidence from State Outcomes

Exercise is an important part of a healthy lifestyle and influences a variety of health outcomes. Regions vary in their levels of exercise due to geography, climate, culture, and policy. The extent to which a country's policies are consistent with economic freedom has been found to be positively associated with greater participation in physical activity. We empirically investigate the relationship between economic freedom and exercise across U.S. states. Contrary to the cross-country results, we find that states with higher levels of economic freedom have lower rates of participation in exercise.