Abstract
Mental health problems during pregnancy affect around 20% of mothers and may have lasting impacts on children’s health, cognitive and socio-emotional skills, educational attainment, and future labour market outcomes. We identify the causal effect of mothers’ prenatal mental health on a range of child psychological, socio-emotional and cognitive outcomes. Our methodology exploits shocks to mothers’ mental health that are induced by illness of the mother’s friends or relatives, whilst accounting for the non-randomness of exposure to illness. We find that mothers’ mental health problems negatively affect children’s psychological and socio-emotional skills in early childhood, but these fade-out between the ages of 11-13. There is no effect on children’s cognitive outcomes. Hence, our findings suggest that maternal prenatal mental health may have a limited direct effect on children’s future labour market outcomes.
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