Do menu-labelling laws translate into results? The disparate impacts on population obesity and diabetes

ABSTRACT

Despite their joint importance to health care costs, the nature of the relationship between obesity and diabetes is contested within the medical literature. We leverage California’s 2008 law mandating menu-labelling at restaurants to confirm that the law reduced obesity compared to the experience of counties not subject to such regulation. Despite this reduction in obesity, we find no California-specific reduction in the prevalence of diabetes and we find a significantly positive impact on the likelihood of new diabetes diagnoses. We evaluate a range of potential hypotheses that rationalize the divergent findings on obesity and diabetes.