The Effect of Urban Empowerment Zones on Fertility and Health: A Case Study of Chicago, New York City, and Philadelphia

Abstract

I estimate the health impacts of the Empowerment Zone (EZ) program — a federal program that gave sizeable grants and tax breaks to certain high-poverty census tracts in selected cities. Using difference-in-differences methods, I find that the EZ program decreased fertility rates by 11 percent and improved birth outcomes. This increase in infant health was not driven by changes in the composition of births. Synthetic control methods and estimates using an alternate control group support these findings. Recent research on the later-life impacts of low birth weight suggest that the health impacts of this program may have substantial long-term benefits.

Keywords: Fetal Origins, Health Economics, Empowerment Zones

JEL Classification: H51, I10, I18