The effects of gender-specific local labor demand on birth and later outcomes

We examine the effects of local labor market conditions during early pregnancy on birth and later outcomes. Using a longitudinal survey of newborns in Japan, we find that improvements in employment opportunities increase the probability of low birth weight, attributable to shortened gestation. This negative effect is mainly driven by the impact of economic shocks on the female labor market. However, we do not find a lasting effect of economic shocks during early pregnancy on severe health conditions or developmental delays in early childhood. Using prefecture-level panel data, we confirm that improvements in female employment opportunities are significantly negatively associated with infant birth weight, but not with the fertility and infant mortality rate.