Three Essays on Health Economics

Abstract

My dissertation covers three loosely related topics in health and education economics that focus on examining factors that may affect children’s and young adults’ health capital and human capital accumulation. The first essay examines the effect of state-level full parity mental illness law implementation on mental illness among college-aged individuals and human capital accumulation in college. It is important to consider spill-overs to these educational outcomes, as previous research shows that mental illness impedes college performance. I utilize administrative data on completed suicides and grade point average, and survey data on reported mental illness days and decision to drop-out of college between 1998 and 2008 in differences-in-differences (DD) analysis to uncover causal effects of state-level parity laws. Following the passage of a state-level full parity law, I find that the suicide rate reduces, the propensity to report any poor mental health day reduces, college GPA increases, and the propensity to drop out of college does not change. The second essay investigates the effects of family size on child health. This essay is a joint study with Kabir Dasgupta. In this study, we use matched mother-child data from the National Longitudinal Surveys to study the effects of family size on child health. Focusing on excess body weight indicators as children’s health outcome of interest, we examine the effects of exogenous variations in family size generated by twin births and parental preference for mixed sex composition of their children. We find no significant empirical support in favor of the quantity-quality trade-off theory in instrumental variable regression analysis. This result is further substantiated when we make use of the panel aspects of the data to study child health outcomes of arrival of younger siblings at later parities. The third essay estimates the causal effect of being born out of wedlock on a child’s health outcome and early academic achievements. Specifically, the study uses rich panel data from the National Longitudinal Survey of Youth 1979 (NLSY79) and the Children of the NLSY79 (NLSY79-child), coupled with a sibling fixed-effects model to address omitted variable bias attributable to unobserved family characteristics. The study findings suggest that the results from the OLS models have been driven by unobserved family effects, because the significance of the results disappear for the sibling fixed-effects models. Also, due to the large confidence intervals, and the signs changing for some of the regression coefficients, I cannot conclusively state whether being born to a married mother has no significant impact on children’s health and education.