Are Environmental Toxins a Source of Health Shocks to Children? Evidence from Hispanic Children in the U.S.

Chronic diseases are among the most prevalent, costly and preventable of all health problems: representing three-quarter of the nation’s $1.4 trillion medical care costs. Childhood cognitive disorders have emerged as a leading contributor to education spending: special education spending alone accounts for 14 percent of the $360 billion on elementary and secondary education. It is important to identify factors that influence the incidence of chronic childhood conditions. We examine whether exposure to environmental toxins, pesticides particularly, impacts children’s cognitive and physical health. Using the Hispanic Health and Nutrition Examination Survey, we find that exposure to pesticides through farming or pesticide production significantly increases a child’s chance of developing heart, respiratory and other chronic diseases. Furthermore, parental occupational exposure to pesticides significantly increases their children’s chance of exhibiting cognitive disorders, respiratory diseases including asthma, heart diseases and other chronic diseases. The medical costs and the reduction in children’s future earnings associated with poor cognitive and physical health amount to 30 percent of their future lifelong earnings