Shocks at home: child accidents and maternal outcomes

• In Event: Lightning Session: Family and Child Policy & Population and Migration Issues

Abstract

Traumatic accidents have become a leading cause of mortality and morbidity among U.S. children, with a troubling upward trend contributing to billions of dollars in annual economic losses. However, how such events impact household economic decision-making remains understudied, particularly with regard to mothers who often serve as primary caregivers. Using 1994-2020 data from the National Longitudinal Survey of Youth 1979 (NLSY79) and its linked child sample, this study examines how unanticipated child accidents and injuries affect maternal time allocation, labor supply, and disability status. Exploiting the random and unanticipated nature of these events, we apply difference-in-differences methods with two-way fixed effects. Results suggest that while child injuries requiring medical attention do not affect maternal labor force participation overall, they significantly reduce the likelihood of mothers working more than 30 hours per week. Such injuries also increase the odds of maternal disability. Surprisingly, more severe incidents requiring hospitalization do not appear to significantly impact maternal labor supply or disability, possibly reflecting differences in duration, symptoms, or care needs across injury types. Spousal presence, access to childcare, and health insurance coverage may moderate these effects. These findings add to the literature concerning the impacts of children’s health shocks on parental labor supply and deepen our understanding of the economic burden undertaken by women within households. The findings can also help identify particularly vulnerable groups and inform the design of targeted policies (e.g., paid family leave policy, universal child health insurance, etc.) to improve the welfare of mothers when facing child health shocks.

Author

• Ning Li, Salisbury University
  Presenting Author