Two CELE researchers present at the Royal Economic Society Annual Conference
Kjell Salvanes and Aline Bütikofer present papers in the Economic Journal Special Session on Early Investment and Life-Cycle Outcomes at the 2017 Royal Economic Society Annual Conference on Monday April 10.
Kjell Salvanes: Natural Resource Booms and Intergenerational Mobility (joint with Antonio Dalla-Zuanna and Aline Bütikofer)
Abstract: Do large economic shocks increase intergenerational earnings mobility by creating new economic opportunities, or do they instead reduce mobility by reinforcing the links between generations? To answer this question, we estimate how the Norwegian oil boom starting in the 1970s affected intergenerational mobility in local labor markets that were most affected by the growing oil industry. We find that this resource shock increased intergenerational mobility for cohorts starting their professional career in the beginning of the oil boom. These findings are not driven by pre-existing local-level differences in intergenerational mobility and persist for cohorts entering the labor market a decade into the oil boom. The change in intergenerational mobility is mostly driven by upward mobility and an increase of lower earnings in oil boom affected local labor markets. Neither geographic differences in human capital investment nor an increase in returns to education are the key mechanisms explaining our results. These geographic differences in intergenerational mobility do, however, not persist for the third generation.
Aline Bütikofer: Infant Health Care and Long-Term Outcomes (joint with Katrine Løken and Kjell Salvanes)
Abstract: A growing literature documents the positive long-term effects of policy-induced improvements in early-life health and nutrition. However, there is still scarce evidence on early-life health programs targeting a large share of the population and the role of such programs in increasing intergenerational mobility. This paper uses the rollout of mother and child health care centers in Norway, which commenced in the 1930s, to study the long-term consequences over the whole life cycle of increasing access to well-child visits in the first year of life. These well-child visits included a physical examination and the provision of information about adequate infant nutrition. Our first results show that access to mother and child health care centers in the first year of life increased the completed years of schooling by 0.15 years and earnings by two percent. Our second set of results reveals that these effects were stronger for children from a low socioeconomic background and contribute to a 10 percent reduction in the persistence of educational attainment across generations. Our third set of findings suggest that better nutrition within the first year of life is the main mechanism. In particular, we find positive effects on adult height and that individuals suffer from fewer health risks at age 40. In addition, we show that access to well-child visits decreased infant mortality from diarrhea whereas infant mortality from pneumonia, tuberculosis, or congenital malformations are not affected. Finally, we investigate the costs of the program and show that investments in mother and child health care centers pass a simple cost--benefit analysis.
Date: Monday, April 10, 15:30–17.00
Session: Special Sessions A
Place: University of Bristol, Lecture Theatre