Testing for an economic gradient in health status using subjective data

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Testing for an economic gradient in health status using subjective data

Author Info

Michael Lokshin (Development Research Group, World Bank, Washington, DC, USA)
Martin Ravallion (Development Research Group, World Bank, Washington, DC, USA)

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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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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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Das, Jishnu & Do, Quy-Toan & Friedman, Jed & McKenzie,David, 2008. "Mental health patterns and consequences : results from survey data in five developing countries," Policy Research Working Paper Series 4495, The World Bank. [Downloadable!]
Other versions:
- 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, Oxford University Press, vol. 23(1), pages 31-55, August. [Downloadable!] (restricted)

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