Labor Seminars Amsterdam

Speaker(s)
Dimitra Politi (University of Edinburgh, United Kingdom)
Date
Tuesday, 6 May 2014
Location
Amsterdam

This paper examines the impact of salt iodization in Switzerland in the 1920s and 1930s on occupational patterns of cohorts born after the intervention. The generalized use of iodized salt successfully combatted iodine deficiency disorders, which were previously endemic in some areas of Switzerland. The most important effect of universal prophylaxis by means of iodized salt was the eradication of mental retardation inflicted in utero by lack of iodine. I show that increased cognition affected occupational patterns in Switzerland. In particular, by exploiting variation in pre-existing conditions and in the timing of the intervention, I show that cohorts born in previously highly deficient areas after the introduction of iodized salt self-selected into higher-paying occupations. I also find that the characteristics of occupations in those areas changed, and that cohorts born after the intervention engaged to a higher degree in occupations with higher cognitive demands.