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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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6367.

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Length: 52 pages
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6367

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Keywords: gradient; health; dynamic panel data models;

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  12. Timothy Halliday, 2007. "Income Volatility and Health," Working Papers 200729, University of Hawaii at Manoa, Department of Economics.
  13. Paul Frijters, 2005. "The causal effect of income on health: Evidence from German reunification," Paul Frijters Discussion Papers 2005-2, School of Economics and Finance, Queensland University of Technology.
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Cited by:
  1. Timothy Halliday, 2013. "Unemployment and Mortality: Evidence from the PSID," Working Papers 2013-14, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.

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