Abstract:
This paper examines the impact of a significant minimum wage increase in Türkiye on infant birth weight and neonatal health. We utilize data from the Türkiye Demographic and Health Survey to investigate the birth outcomes of babies exposed to a 30% minimum wage hike during pregnancy. Leveraging variation in the predicted probability that a household includes a minimum-wage earner, we estimate a difference-in-differences model to identify the causal effect of prenatal exposure to the minimum wage increase. Our analysis reveals that exposure to a higher minimum wage during pregnancy significantly increases birth weight and reduces the likelihood of low birth weight (< 2500 grams). We find no difference in the gestational length or the possibility of receiving prenatal health care, employment status, or smoking behavior for mothers who face an increase in the minimum wage while pregnant. However, mothers exposed to the reform were more likely to receive key prenatal health assessments - such as blood-sample tests and abdominal examination - which may have contributed to the observed improvements in neonatal health.