The unintended effects of place based programs: Fertility and health effects of urban empowerment zones.

Whether place-based welfare programs affect fertility and health outcomes is an understudied question. I estimate the health impacts of the Empowerment Zone (EZ) program-a federal program that gave sizeable grants and tax breaks to certain high-poverty census tracts in selected cities. Using difference-in-differences methods, I find that the EZ program decreased fertility rates by 11 percent and improved birth outcomes. Compositional changes in fertility likely cannot explain changes in infant health. Recent research on the later-life impacts of low birth weight suggest that the health impacts of this program may have substantial long-term benefits.