“The 1973 Oil Embargo and Infant Health Outcomes”
Abstract
An extensive literature documents that economic shocks affect health outcomes, but mechanisms and distributional effects remain unclear. I study how a negative oil supply shock affects infant health using 1968–1979 Vital Statistics data. With an event-study framework that accounts for state-specific pre-trends, I find that states with higher fuel dependence experienced increases in birthweight following the 1973 oil embargo. Gains are larger for less-educated, relatively younger, and Black mothers at 2–3.5 grams. These improvements result from shifts in maternal composition, increased prenatal care use, and reduced air pollution.
