This paper attempts to explain the differences in birthweight observed
between blacks, white Anglos, Chicanos, and other racial and ethnic g
roups. The analysis focuses on the role of income and financial assist
ance from relatives and public programs. Using data from the NLS Youth
Panel, I construct a causal model of birthweight containing exogenous
social and demographic risk factors and intervening proximate determi
nants of birthweight. A substantial part of the gap in birthweight bet
ween white Anglos and other ethnic groups (especially blacks) can be e
xplained by the unfavorable socioeconomic and demographic characterist
ics of the latter. On the other hand, blacks and other minorities smok
e less and have other favorable proximate characteristics that depress
differences in birthweight. When these proximate determinants are con
trolled, large ethic differences in birthweight remain unexplained by
income and other sociodemographic factors.