Abstract:
This study investigates the long-term effects of early-life health on intergenerational mobility in Brazil. Using the first cohort in Brazil, conducted in Ribeirão Preto city in 1978-79, linked to administrative income records, we study the effects of low birth weight on upward mobility and income inequality, conditional on several confounding factors. We find that individuals born with low birth weight have 13.5 percentage point chance to surpass their parents' income by at least 10 percentiles. The penalty for having poor early health remains if we use other measures of early health. Additionally, children with poor early health have less chance to complete higher education. Educational attainment partially mediates the effect of low birth weight on upward mobility. The inclusion of maternal smoking and insufficient prenatal care in our models does not significantly alter the estimated effect of low birth weight on upward mobility, suggesting that other prenatal and early-life factors contribute to the long-term disadvantages associated with low birth weight.
