The Returns to Parental Health: Evidence from Indonesia

40 Pages Posted: 3 Dec 2018

See all articles by Dara Lee Luca

Dara Lee Luca

Mathematica Policy Research

David E. Bloom

Harvard University - T.H. Chan School of Public Health; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: November 2018

Abstract

This paper investigates the economic returns to parental health. To account for potential endogeneity between parental health and child outcomes, we leverage longitudinal microdata from Indonesia to estimate individual fixed effects models. Our results show that the economic returns to parental health are high. We show that maternal health not only significantly affects her children’s health, but is also intrinsically linked to her spouse’s labor market status and earnings. Paternal health appears to be more linked to child schooling outcomes, especially for girls. When both parents are in poor health, the negative effects on their children are compounded. Additionally, the consequences of poor parental health are enduring. Longer-run effects of poor parental health manifest in a lower likelihood of high school completion, fewer years of schooling, and poorer adult health.

Suggested Citation

Luca, Dara Lee and Bloom, David E., The Returns to Parental Health: Evidence from Indonesia (November 2018). NBER Working Paper No. w25304, Available at SSRN: https://ssrn.com/abstract=3294872

Dara Lee Luca (Contact Author)

Mathematica Policy Research ( email )

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David E. Bloom

Harvard University - T.H. Chan School of Public Health ( email )

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Boston, MA MA 02115
United States
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National Bureau of Economic Research (NBER)

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