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Earnings Growth and Movements in Self-Reported Health

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  • Halliday, Timothy J.

    (University of Hawaii at Manoa)

Abstract

We employ data from the Panel Study of Income Dynamics to investigate income to health causality. To account for unobserved heterogeneity, we focus on the relationship between earnings growth and changes in self-reported health status. Causal claims are predicated upon appropriate moment restrictions and specification tests of their validity. We find evidence of Granger-type causality running from income to health for married men but not for women or single men. These effects are more pronounced for younger men and the bottom quartile of the earnings distribution. The former may be the consequence of permanent earnings shocks, whereas the latter may be the consequence of job loss.

Suggested Citation

  • Halliday, Timothy J., 2012. "Earnings Growth and Movements in Self-Reported Health," IZA Discussion Papers 6367, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6367
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    Cited by:

    1. Deborah J Schofield & Emily J Callander & Rupendra N Shrestha & Megan E Passey & Richard Percival & Simon J Kelly, 2013. "Multiple Chronic Health Conditions and Their Link with Labour Force Participation and Economic Status," PLOS ONE, Public Library of Science, vol. 8(11), pages 1-1, November.
    2. Halliday, Timothy J., 2014. "Unemployment and mortality: Evidence from the PSID," Social Science & Medicine, Elsevier, vol. 113(C), pages 15-22.

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    More about this item

    Keywords

    gradient; health; dynamic panel data models;
    All these keywords.

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J1 - Labor and Demographic Economics - - Demographic Economics

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