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Mortality, Human Capital and Persistent Inequality

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Author Info
Shankha Chakraborty ()
Mausumi Das ()

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Abstract

Available evidence suggests high intergenerational correlation of economic status and persistent disparities in health status between the rich and the poor. This paper proposes a mechanism linking the two. We introduce health capital into a two-period overlapping generations model. Private health investment improves the probability of surviving from the first period of life to the next and, along with education, enhances an individual’s labor productivity. Poorer parents are of poor health, unable to invest much in reducing mortality risk and improving their human capital. Consequently, they leave less for their progeny. Despite convex preferences and technologies, initial differences in economic and health status may perpetuate across generations when annuities markets are imperfect. Copyright Springer 2005

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File URL: http://hdl.handle.net/10.1007/s10887-005-1670-5
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Publisher Info
Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 10 (2005)
Issue (Month): 2 (06)
Pages: 159-192
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Handle: RePEc:kap:jecgro:v:10:y:2005:i:2:p:159-192

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Keywords: life expectancy health human capital income distribution I12 I20 O15

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References listed on IDEAS
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  1. David, DE LA CROIX & Alessandro, SOMMACAL, 2006. "A Theory of Medecine Effectiveness, Differential Mortality, Income Inequality and Growth for Pre-Industrial England," Université catholique de Louvain, Département des Sciences Economiques Working Paper 2006025, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
  2. Sambit Bhattacharyya, 2007. "Root Causes of African Underdevelopment," Working Papers in Economics and Development Studies (WoPEDS) 200704, Department of Economics, Padjadjaran University, revised Apr 2007. [Downloadable!]
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  4. Andrés Rodríguez-Pose & Vassilis Tselios, 2007. "Education and income inequality in the regions of the European Union," Working Papers 2007-17, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales. [Downloadable!]
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  5. de la Croix, David & Licandro, Omar, 2007. "‘The Child is Father of the Man:’ Implications for the Demographic Transition," CEPR Discussion Papers 6493, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Raouf, BOUCEKKINE, 2007. "A theory of dynamics and inequalities under epidemics," Université catholique de Louvain, Département des Sciences Economiques Working Paper 2007022, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
    Other versions:
  7. Raouf, BOUCEKKINE & Bity, DIENE & Theophile, AZOMAHOU, 2006. "The Growth economics of epidemics," Université catholique de Louvain, Département des Sciences Economiques Working Paper 2006021, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
  8. Bhattacharya, Joydeep & Qiao, Xue, 2005. "Public and Private Expenditures on Health in a Growth Model," Staff General Research Papers 12378, Iowa State University, Department of Economics.
  9. Raouf Boucekkine & Raouf Boucekkine, 2006. "Medium term dynamics and inequalities under epidemics," Computing in Economics and Finance 2006 209, Society for Computational Economics. [Downloadable!]
  10. Shankha Chakraborty & Mausumi Das, 2003. "Mortality, Fertility and Child Labor," University of Oregon Economics Department Working Papers 2003-35, University of Oregon Economics Department, revised 01 Dec 2003. [Downloadable!]
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  11. Michal Bauer & Julie Chytilová, 2007. "Does Education Matter in Patience Formation? Evidence from Ugandan Villages," Working Papers IES 2007/10, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Feb 2007. [Downloadable!]
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    Other versions:
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