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Controlling for Causality in the Link from Income to Mortality

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  • Chapman, Kenneth S
  • Hariharan, Govind
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    Abstract

    While previous research shows that wealthier people tend to live longer, it is not clear whether this occurs because wealthy people make greater investments in health and safety or because inherently healthy people tend to make more money. This article uses measures of initial health to focus on the flow from wealth to good health. While the estimated link between income and mortality is less than in other articles, we find that a significant link still remains. In particular, we estimate that health and safety regulations, which cost more than $12.2 million per life saved, are likely to kill more people through increased poverty than they save directly. Estimates of costs per life saved provided by the Office of Management and Budget suggest that many health and safety programs implemented in the last 20 years would be eliminated using this criterion. Copyright 1994 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Risk and Uncertainty.

    Volume (Year): 8 (1994)
    Issue (Month): 1 (January)
    Pages: 85-93

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    Handle: RePEc:kap:jrisku:v:8:y:1994:i:1:p:85-93

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    Web page: http://www.springerlink.com/link.asp?id=100299

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    Cited by:
    1. W. Kip Viscusi & Joseph E. Aldy, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," NBER Working Papers 9487, National Bureau of Economic Research, Inc.
    2. Stephen E. Snyder & William N. Evans, 2002. "The Impact of Income on Mortality: Evidence from the Social Security Notch," NBER Working Papers 9197, National Bureau of Economic Research, Inc.
    3. Kuchler, Fred & Golan, Elise H., 1999. "Assigning Values To Life: Comparing Methods For Valuing Health Risks," Agricultural Economics Reports 34037, United States Department of Agriculture, Economic Research Service.
    4. Gerdtham, Ulf-G. & Johannesson, Magnus, 2003. "A note on the effect of unemployment on mortality," Journal of Health Economics, Elsevier, vol. 22(3), pages 505-518, May.
    5. Silvana Robone & Andrew Jones & Nigel Rice, 2011. "Contractual conditions, working conditions and their impact on health and well-being," The European Journal of Health Economics, Springer, vol. 12(5), pages 429-444, October.
    6. Thomas S. Dee, 2001. "Alcohol abuse and economic conditions: Evidence from repeated cross-sections of individual-level data," Health Economics, John Wiley & Sons, Ltd., vol. 10(3), pages 257-270.
    7. Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004. "Healthy, Wealthy, and Wise? Tests for Direct Causal Paths between Health and Socioeconomic Status," NBER Chapters, in: Perspectives on the Economics of Aging, pages 415-526 National Bureau of Economic Research, Inc.
    8. Bender, Keith A. & Theodossiou, Ioannis, 2009. "Controlling for endogeneity in the health-socioeconomic status relationship of the near retired," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 977-987, December.
    9. Ettner, Susan L., 1996. "New evidence on the relationship between income and health," Journal of Health Economics, Elsevier, vol. 15(1), pages 67-85, February.

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