Arbeitspapier

Maternal Stress and Offspring Lifelong Labor Market Outcomes

This paper examines the effects of in-utero exposure to stress on lifelong labor market outcomes. We exploit a unique natural experiment that involved randomly placed Nazi raids on municipalities in Italy during WWII. We use administrative data on the universe of private sector workers in Italy and link this data to unique historical data with detailed information about war casualties and Nazi raids across space (Municipality) and time. We find that prenatal stress exposure leads to lower wage earnings when workers start their career, and that this effect persists until retirement. The earnings penalty is in large part due to the type of job that people hold and interruptions in their working career due to unemployment. We further show that workers exposed to in-utero stress face larger earnings reductions after job loss due to mass layoffs. This earnings loss deepens their relative disadvantage over time.

Language
Englisch

Bibliographic citation
Series: Tinbergen Institute Discussion Paper ; No. TI 2020-065/V

Classification
Wirtschaft
Subject
Early-life
Stress
Life-long earnings
mass layoff
dynamic complementarities

Event
Geistige Schöpfung
(who)
Atella, Vincenzo
di Porto, Edoardo
Kopinska, Joanna
Lindeboom, Maarten
Event
Veröffentlichung
(who)
Tinbergen Institute
(where)
Amsterdam and Rotterdam
(when)
2020

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Atella, Vincenzo
  • di Porto, Edoardo
  • Kopinska, Joanna
  • Lindeboom, Maarten
  • Tinbergen Institute

Time of origin

  • 2020

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