Examining the consequences of poor neonatal health on the family

Abstract

We compare the trajectories of families who have a child with poor neonatal health compared to those who do not, using administrative birth record data merged with longitudinal household survey data. We apply entropy balancing and weighting methods to enhance comparison between the two types of families. We find that children with poor neonatal health are more likely to be diagnosed with a disability and to receive Supplemental Security Income. Mothers who have children with poor neonatal health are more likely to reduce labor force participation at both the intensive and extensive margins when the child is young. Further, they are more likely to receive benefits from the Supplemental Nutrition Assistance Program and the Temporary Assistance for Needy Families program. We find no significant effects of poor neonatal health on maternal mental health or household income. Parents who have children with poor neonatal health are significantly less likely to remain married or cohabiting.