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Health Inequality over the Life-Cycle

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Author Info
Timothy J. Halliday () (Department of Economics, University of Hawaii at Manoa, Institute for the Study of Labor (IZA))

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Abstract

We investigate the evolution of health inequality over the life-course. Health is modeled as a latent variable that is determined by three factors: endowments, and permanent and transitory shocks. We employ Simulated Minimum Distance and the Panel Study of Income Dynamics to estimate the model. We estimate that permanent shocks account for under 10% of the total variation in health for the colleged educated, but between 35% and 70% of total health variability for people without college degrees. Consistent with this, we find that health inequality moves substantially more slowly over the life-course for the college educated.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_09-8.pdf
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File Function: First version, 2009
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Publisher Info
Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200908.

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Length: 31 pages
Date of creation: 10 Aug 2009
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Handle: RePEc:hai:wpaper:200908

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Related research
Keywords: health; dynamic panel data models; variance decomposition;

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Find related papers by JEL classification:
I1 - Health, Education, and Welfare - - Health
C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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  1. Steven Stern, 1997. "Simulation-Based Estimation," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 2006-2039, December. [Downloadable!] (restricted)
  2. Primiceri, Giorgio E. & van Rens, Thijs, 2009. "Heterogeneous life-cycle profiles, income risk and consumption inequality," Journal of Monetary Economics, Elsevier, vol. 56(1), pages 20-39, January. [Downloadable!] (restricted)
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  3. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr. [Downloadable!] (restricted)
  4. Deaton, Angus & Paxson, Christina, 1994. "Intertemporal Choice and Inequality," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 437-67, June. [Downloadable!] (restricted)
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  5. Adda, Jérôme & Banks, James & von Gaudecker, Hans-Martin, 2008. "The Impact of Income Shocks on Health: Evidence from Cohort Data," IZA Discussion Papers 3329, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Michael Baker & Mark Stabile & Catherine Deri, 2004. "What Do Self-Reported, Objective, Measures of Health Measure?," Journal of Human Resources, University of Wisconsin Press, vol. 39(4). [Downloadable!] (restricted)
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  7. Anne Case & Angus S. Deaton, 2005. "Broken Down by Work and Sex: How Our Health Declines," NBER Chapters, in: Analyses in the Economics of Aging, pages 185-212 National Bureau of Economic Research, Inc. [Downloadable!]
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