Booms, busts, and babies' health

We study the relationship between the unemployment rate at the time of a baby's conception and parental characteristics, parental behaviors, and babies' health. Babies conceived in times of high unemployment have a reduced incidence of low and very low birth weight, fewer congenital malformations, and lower postneonatal mortality. These health improvements are attributable both to selection ( changes in the type of mothers who conceive during recessions) and to improvements in health behavior during recessions. Black mothers tend to be higher socioeconomic status ( as measured by education and marital status) in times of high unemployment, whereas White mothers are less educated.