Maternal smoking during pregnancy and early child outcomes

We estimate the harm from smoking during pregnancy upon child birth outcomes, using a rich dataset on a cohort of mothers and their births. We exploit a fixed effects approach to disentangle the correlation between smoking and birth weight from the causal effect. We find that, despite a detailed set of controls for maternal traits, around one-third of the harm from smoking is explained by unobservable traits of the mother. Smoking tends to reduce birth weight by 1.7%, but has no significant effect on the probability of having a low birth weight child, pre-term gestation or weeks of gestation. Exploring heterogeneity in the effect on birth weight, it is mothers who smoke for the 9 months of gestation that suffer the harm, whereas there is an insignificant effect for mothers who chose to quit by month 5. Additionally, there is evidence of potential complementarity in investment of human capital, as the impact on birth weight of smoking is much greater for low educated mothers, even controlling for the quantity of cigarettes they smoke. We suggest policy should target the low educated mothers, offering a more holistic approach to improving child health, as quitting smoking is only half of the battl

Maternal Smoking During Pregnancy and Early Child Outcomes

We estimate the harm from smoking during pregnancy upon child birth outcomes, using a rich dataset on a cohort of mothers and their births. We exploit a fixed effects approach to disentangle the correlation between smoking and birth weight from the causal effect. We find that, despite a detailed set of controls for maternal traits, around one-third of the harm from smoking is explained by unobservable traits of the mother. Smoking tends to reduce birth weight by 1.7%, but has no significant effect on the probability of having a low birth weight child, pre-term gestation or weeks of gestation. Exploring heterogeneity in the effect on birth weight, it is mothers who smoke for the 9 months of gestation that suffer the harm, whereas there is an insignificant effect for mothers who chose to quit by month 5. Additionally, there is evidence of potential complementarity in investment of human capital, as the impact on birth weight of smoking is much greater for low educated mothers, even controlling for the quantity of cigarettes they smoke. We suggest policy should target the low educated mothers, offering a more holistic approach to improving child health, as quitting smoking is only half of the battle.Smoking, Pregnancy, Child Health, Birth Weight

Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock

Female labor supply can insure households against shocks to paternal employment. The paper estimates whether the female labor supply response to a paternal employment shock differs by eligibility to maternity employment protection. We exploit time-state variation in the implementation of unpaid maternity leave through the Family and Medical Leave Act (FMLA) in the US which increased employment protection from 0 to 12 weeks. We find that mothers eligible for FMLA speed up their return to work in response to a paternal shock, with a conditional probability of being in work 53% higher than in households with no paternal shock. In contrast, there was a negligible insurance response for mothers with no employment protection

The Wage Scar from Youth Unemployment

In this paper we utilise the National Child Development Survey to analyse the impact of unemployment during youth upon the wage of individuals up to twenty years later. We find a large and significant wage penalty, even after controlling for educational achievement, region of residence and a wealth of family and individual specific characteristics. We employ an instrumental variables technique to ensure that our results are not driven unobserved individual heterogeneity. Our estimates are robust to the test, indicating that the relationship estimated between youth unemployment and the wage in later life is a causal relationship. Our results suggest a scar from early unemployment in the magnitude of 12% to 15% at age 42. However, this penalty is lower, at 8% to 10%, if individuals avoid repeat incidence of unemployment.youth unemployment, scarring, cost of job loss

The Timing of Parental Income and Child Outcomes: The Role of Permanent and Transitory Shocks

How do shocks to parental income drive adolescent human capital, including years of schooling, high school dropout, university attendance, IQ and health? A structural model decomposes household shocks into permanent and transitory components, then the effect of shocks at age 1-16 is estimated for 600,000 Norwegian children. The effect of permanent shocks declines - and of transitory shocks is small and constant across child age, suggesting parents optimise similarly to consumption. However there is a lower effect of transitory shocks for liquidity constrained parents. An interpretation is that these parents use income shocks for essential consumption rather than investment.Income, pupil outcomes, shocks

The Timing of Parental Income and Child Outcomes: The Role of Permanent and Transitory Shocks.

How do shocks to parental income drive adolescent human capital, including years of schooling, high school dropout, university attendance, IQ and health? A structural model decomposes household shocks into permanent and transitory components, then the effect of shocks at age 1-16 is estimated for 600,000 Norwegian children. The effect of permanent shocks declines - and of transitory shocks is small and constant across child age, suggesting parents optimise similarly to onsumption. However there is a lower effect of transitory shocks for liquidity constrained parents. An interpretation is that these parents use income shocks for essential consumption rather than investment.

Research on the Intergenerational Links in the Every Child Matters Outcomes.Report to the Department of Children, Schools and Families

The Every Child Matters (ECM) agenda was introduced in the UK, as a policy aiming to improve child outcomes along five broad areas. The categories are Be Healthy, Stay Safe, Enjoy and Achieve, Make a Positive Contribution and Achieve Economic Wellbeing1. The objective therefore, is to move beyond the traditional focus on child academic outcomes, to improve the wellbeing of children in the UK. From a policy perspective, there is a need to understand the mechanism through which the wide range of child ECM outcomes form. This report evaluates the role of families in driving the ECM outcomes of their children. Specifically, we analyse the intergenerational transmission of ECM outcomes between parents and children. We take the approach of analysing correlations across generations in a wide set of outcomes - the broadest set of variables studied to date. Existing studies of intergenerational correlations across generations tend to focus on outcomes such as earnings, and consequently very little is known about how healthiness, safety and enjoyment of school are correlated across generations. We contribute towards this literature by extending the scope of child outcomes. This research was commissioned before the new UK Government took office on 11 May 2010. As a result the content may not reflect current Government policy and may make reference to the Department for Children, Schools and Families (DCSF) which has now been replaced by the Department for Education (DfE). The views expressed in this report are those of the authors' and do not necessarily reflect those of the Department for Education.Every Child Matters, ECM, education

Incentives in the Public Sector: Evidence from a Government Agency

This paper addresses a lack of evidence on the impact of performance pay in the public sector by evaluating a pilot scheme of incentives in a major government agency. The incentive scheme was based on teams and covered five different targets, measured with varying degrees of precision. We use data from the agency's performance management system and personnel records, plus matched labour market data. We focus on three main issues: whether performance pay matters for public service workers, what the team basis of the scheme implies, and the impact of the differential measurement precision. We show that the use of performance pay did have a significant effect on the main quality measure (job placements), but that there was significant heterogeneity of response. This heterogeneity was patterned as one would expect from a free rider versus per monitoring perspective. We found that the incentive had a substantial positive effect in small teams, and a negative response in large teams. We found little impact of the scheme on quality measures, and we interpret this as due to the differential measurement technology. We show that the scheme in small teams had non-trivial effects on output, and our estimates suggest that the use of incentive pay is much more cost effective than a general pay rise.incentives, public sector, teams, performance, personnel economics

Parental Inputs and Socio-Economic Gaps in Early Child Development

By the time children start school, socio-economic gaps are evident in child skills. We document a causal effect of a reform to mothers' education on her child's skills and use mediation analysis to explore the role of parental inputs as mechanisms. The reform shifted mothers' education from no, to a low level of qualifications. Our results suggest that financial resources are an important channel, explaining up to 59% of the effect on child cognitive skills. On top of this, parental investments of health behaviours during pregnancy and monetary investments at home explain a further 14% of the test score gaps

Incentives in the Public Sector: Evidence from a Government Agency

This paper addresses a lack of evidence on the impact of performance pay in the public sector by evaluating a pilot scheme of incentives in a major government agency. The incentive scheme was based on teams and covered quantity and quality targets, measured with varying degrees of precision. We use data from the agency’s performance management system and personnel records plus matched labour market data. We focus on three main issues: whether performance pay matters for public service worker productivity, what the team basis of the scheme implies, and the impact of the differential measurement precision. We show that the use of performance pay had no impact at the mean, but that there was significant heterogeneity of response. This heterogeneity was patterned as one would expect from a free rider versus peer monitoring perspective. We found that the incentive had a substantial positive effect in small teams, and a negative response in large teams. We found little impact of the scheme on quality measures, which we interpret as due to the differential measurement technology. We show that the scheme in small teams had non-trivial effects on output, and our estimates suggest that the use of incentive pay is much more cost effective than a general pay rise.Incentives, Public Sector, Teams, Performance, Personnel Economics