Job Market Paper: Does free health care mitigate the effect of  prenatal air pollution on birth outcomes?


Environmental and epidemiological research has linked prenatal air pollution exposure to the incidence of fetal and infant death, adverse birth outcomes, and worse outcomes in adulthood and across generations. Moreover, the effects of ambient air pollution depend on social and economic factors. This paper tests whether access to free prenatal health care mitigates the adverse health effects of exposure to air pollution in-utero. I study how the expansion of Medicaid (publicly-provided health insurance for low-income households) changed the effect of prenatal exposure to sulfur dioxide (SO2) on fetal death and birth outcomes. Theoretically, the effect is ambiguous: Even if health care mitigates the biological impact of air pollution, there could be a substitution between access to health care and pollution avoidance. High SO2 concentrations increased fetal deaths, and Medicaid’s expansion attenuated this effect. Estimating the impact of Medicaid on the SO2-birth outcome relationship is empirically challenging because the infants marginally saved by Medicaid could be positively or negatively selected. The analysis of traditional outcome variables (e.g., birthweight, low birthweight rate)  suggests that Medicaid had no impact or even intensified the damage of SO2 on health at birth. To account for the possibility of sample selection, I instead analyzed the number of non-low birth weight (i.e., healthy) infants per woman of reproductive age (nlbw/w). Using this dependent variable, I find that Medicaid mitigated the effect of SO2 on (nlbw/w) in low-pollution areas and at the national level. Furthermore, the reduction was larger for blacks than whites; thus, Medicaid improved environmental justice in the US by shrinking the gap in the health effects of in-utero air pollution between races.

Full paper Here