Long-term Health and Human Capital Effects of Early-Life Economic Conditions

TL;DR

This study investigates whether early-life economic conditions have long-term effects on health and human capital, using historical unemployment data and UK Biobank outcomes, finding no significant impact from small economic fluctuations.

Contribution

It provides evidence that minor local economic changes during early life do not significantly influence long-term health or human capital outcomes.

Findings

No significant long-term effects from small economic fluctuations

Utilizes historical unemployment data linked with biobank health data

Employs variation from industry-specific shocks for analysis

Abstract

We study the long-term health and human capital impacts of local economic conditions experienced during the first 1,000 days of life. We combine historical data on monthly unemployment rates in urban England and Wales 1952-1967 with data from the UK Biobank on later-life outcomes. Leveraging variation in unemployment driven by national industry-specific shocks weighted by industry's importance in each area, we find no evidence that small, common fluctuations in local economic conditions during the early life period affect health or human capital in older age.