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Testing for an economic gradient in health status using subjective data

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  • Michael Lokshin

    (Development Research Group, World Bank, Washington, DC, USA)

  • Martin Ravallion

    (Development Research Group, World Bank, Washington, DC, USA)

Abstract

Can self-assessments of health reveal the true health differentials between 'rich' and 'poor'? The potential sources of bias include psychological adaptation to ill-health, socioeconomic covariates of health reporting errors and income measurement errors. We propose an estimation method to reduce the bias by isolating the component of self-assessed health that is explicable in terms of objective health indicators and allowing for broader dimensions of economic welfare than captured by current incomes. On applying our method to survey data for Russia we find a pronounced (nonlinear) economic gradient in health status that is not evident in the raw data. This is largely attributable to the health effects of age, education and location. Copyright © 2008 John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 17 (2008)
Issue (Month): 11 ()
Pages: 1237-1259

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Handle: RePEc:wly:hlthec:v:17:y:2008:i:11:p:1237-1259

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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Cited by:
  1. Ravallion, Martin, 2012. "Poor, or just feeling poor ? on using subjective data in measuring poverty," Policy Research Working Paper Series 5968, The World Bank.
  2. Maria Ana Lugo & Koen Decancq, 2009. "Measuring Inequality of Well-Being with a Correlation-Sensitive Multidimensional Gini Index," Economics Series Working Papers, University of Oxford, Department of Economics 459, University of Oxford, Department of Economics.
  3. Koen DECANCQ, 2009. "Copula-based measurement of dependence between dimensions of well-being," Center for Economic Studies - Discussion papers, Katholieke Universiteit Leuven, Centrum voor Economische Studiën ces09.24, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  4. Ravallion, Martin & Himelein, Kristen & Beegle, Kathleen, 2013. "Can subjective questions on economic welfare be trusted ? evidence for three developing countries," Policy Research Working Paper Series 6726, The World Bank.
  5. Jishnu Das & Quy-Toan Do & Jed Friedman & David McKenzie, 2008. "Mental Health Patterns and Consequences: Results from Survey Data in Five Developing Countries," World Bank Economic Review, World Bank Group, World Bank Group, vol. 23(1), pages 31-55, August.

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