Many studies have shown an association between air pollution and asthma exacerbation. Economists have often valued the economic benefits of a reduction in asthma attacks in children by applying the Cost-of-Illness approach without taking into account the impact of children’s health on the labor market decisions of parents. This study explores how the presence of an asthmatic child affects (i) mothers’ labor force participation; (ii) mothers’ and fathers’ number of work hours, and (iii) mothers’ and fathers’ earnings and hourly wages. In addition, it addresses the question: are there age-specific differences on the effects of child health on parents’ labor market outcomes? I consider single mothers, and mothers and fathers with partners. The analysis is based on data from the Medical Expenditure Panel Survey for U.S. households with children 0-17 years old from 1996 to 2002. I compare these effects to those of a set of health conditions that includes deformities, congenital anomalies, heart problems, epilepsy and cancer. The results show that in quantifying the benefits of reducing pollution economists should also consider the labor market impacts of children health. In particular, my results suggest that single mothers are the most affected group, and that there are significant children age-specific differences.
Environmental Exposures, Children’s Health and Parents’ Labor Market Decisions in the United States: The Role of Asthma
VERONESI, Marcella
2011-01-01
Abstract
Many studies have shown an association between air pollution and asthma exacerbation. Economists have often valued the economic benefits of a reduction in asthma attacks in children by applying the Cost-of-Illness approach without taking into account the impact of children’s health on the labor market decisions of parents. This study explores how the presence of an asthmatic child affects (i) mothers’ labor force participation; (ii) mothers’ and fathers’ number of work hours, and (iii) mothers’ and fathers’ earnings and hourly wages. In addition, it addresses the question: are there age-specific differences on the effects of child health on parents’ labor market outcomes? I consider single mothers, and mothers and fathers with partners. The analysis is based on data from the Medical Expenditure Panel Survey for U.S. households with children 0-17 years old from 1996 to 2002. I compare these effects to those of a set of health conditions that includes deformities, congenital anomalies, heart problems, epilepsy and cancer. The results show that in quantifying the benefits of reducing pollution economists should also consider the labor market impacts of children health. In particular, my results suggest that single mothers are the most affected group, and that there are significant children age-specific differences.
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