Impacts of Child Health on Families: Evidence from Childhood Cancers

How do parents contend with threats to the health and survival of their children? We combine the universe of cancer diagnoses among Danish children with register data for affected and matched unaffected families. Parental income declines substantially for 3-4 years following diagnosis, an effect driven by reductions in working hours. Fathers’ incomes recover fully, but mothers’ incomes remain 5% lower 12 years after diagnosis. Both parents’ mental health suffers. Fertility increases, particularly among families in which the child died. These results demonstrate that even in high-income settings, severe shocks to child health can have long-lasting consequences for family outcomes.