Minimum Wage Increases and Severe Maternal Morbidity

• In Event: A New Perspective on Minimum Wage Effects

Abstract

This project investigates the impact of minimum wage increases on severe maternal morbidity (SMM) in the United States. SMM has risen sharply over the past two decades, affecting nearly 50,000 women annually. Lack of economic resources during pregnancy is closely linked to adverse maternal health outcomes by increasing maternal stress and reducing access to adequate prenatal and postpartum care. Minimum wage policies play an important role in alleviating economic constraints by improving income for low-wage workers and helping pregnant women get better healthcare, nutrition, and mental stability. This may lead to better maternal and pregnancy-related health outcomes, especially in cardiovascular-related pregnancy conditions such as gestational hypertension and pre-eclampsia, which are potential risk factors of SMM that are highly related to chronic stress.

While prior research has shown that economic hardship is closely linked to chronic stress and leads to hypertension among the general population, little is known about the effects of income-related policies on pregnant women. To address this gap, we combine state-level minimum wage policies data with hospital discharge records from the Healthcare Cost and Utilization Project State Inpatient Data (HCUP-SID) from 2000 to 2019, which includes all inpatient hospitalizations at the state-year level.  Using a difference-in-difference framework, we estimate the effects of minimum wage changes on SMM rates among delivery-related discharges, comorbidities such as hypertensive disorders, and delivery-related healthcare expenditures.

Moreover, alleviating financial burdens with minimum wage increases are expected to have different impacts across racial and ethnic groups. Given that non-Hispanic Black women have the highest SMM rates and disproportionately represent those living in poverty and earning minimum wage, we also explore heterogeneous effects by race and ethnicity. This study contributes to the literature on the social determinants of maternal health and provides evidence on whether economic policies can be effective for improving maternal health outcomes.

Author

• Hyoyoung Han, Rutgers University
  Presenting Author