Lifetime and Intergenerational Consequences of Poor Childhood Health

Abstract

Does childhood health capital affect long-run labor market success? We address this question using inpatient hospital records linked to population census records. Sibling fixed effects estimates indicate that in comparison to their brothers, boys with health deficiencies were more likely to experience downward occupational mobility relative to their father’s occupational rank. The decline in occupational success across generations can be separated into a lower likelihood of attaining white collar status and a higher likelihood of working in unskilled jobs, which translated into lower occupational wages on average. Additionally, we find an increase in the probability of being single in adulthood for both male and female patients compared with their siblings of the same gender. Evidence indicates that lower participation in schooling and higher rates of disability in both childhood and adulthood are plausible mechanisms for our findings.