We investigate the impact of exogenous income shocks on health using twenty years of data from the Panel Study of Income Dynamic. To unravel the impact of income on health from unobserved heterogeneity and reverse causality, we employ techniques from the literature on the estimation of dynamic panel data models. Contrary to much of the previous literature on the gradient, we find that, on average, adverse income shocks lead to a deterioration of health. These effects are most pronounced for working-aged men and are dominated by transitions into the very bottom of the earnings distribution. We also provide suggestive evidence of an association between negative income shocks and higher mortality for working-aged men.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number
200612.
Length: 31 pages Date of creation: 2006 Date of revision: Handle: RePEc:hai:wpaper:200612
Note: Revised version of WP:06-6, The Impact of Aggregate and Idiosyncratic Income Shocks on Health: Evidence from the PSID Contact details of provider: Postal: 2424 Maile Way, Honolulu, HI 96822 Phone: (808)956-8730 Fax: (808)956-4347 Email: Web page: http://www.economics.hawaii.edu/ More information through EDIRC
Timothy J. Halliday, 2007.
"Income Risk and Health,"
Working Papers
200710, University of Hawaii at Manoa, Department of Economics.
[Downloadable!]
Find related papers by JEL classification: I0 - Health, Education, and Welfare - - General I12 - Health, Education, and Welfare - - Health - - - Health Production J1 - Labor and Demographic Economics - - Demographic Economics
This paper has been announced in the following NEP Reports:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Jonathan Meer & Douglas L. Miller & Harvey S. Rosen, 2003.
"Exploring the Health-Wealth Nexus,"
NBER Working Papers
9554, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Anne Case & Christina Paxson, 2004.
"Sex Differences in Morbidity and Mortality,"
Working Papers
171, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
[Downloadable!]
Other versions:
Anne Case & Christina Paxson, 2004.
"Sex Differences in Morbidity and Mortality,"
Working Papers
244, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
[Downloadable!]
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)