Seminar

This study examines the consequences of parental job displacements for birth outcomes, and scrutinizes the geographical heterogeneity of these effects. We use Swedish register data and exploit plausibly exogenous variation caused by workplace closures to reduce the bias related to reverse causality and confounding. When comparing children of parents who experienced job displacements due to workplace closures and children of parents who were not displaced, the differences in birth outcomes between these two groups turn out to be quite modest. Even in the most disadvantaged regions and municipalities, with highest unemployment rates, parental job displacement is not harmful for health at birth. We relate these findings to the institutional setting in Sweden and discuss policy implications for the U.S.