Causal effect of income on health: Investigating two closely related policy reforms in Austria
AbstractI investigate the effect of income on mortality of the pensioners, com- paring three subsequent policy periods in Austria. The pensioners who retired in the second period received 25% lower pension than those in the first period. This reduction in income was removed in the third policy period. These two reforms allow a causal identification of the effect of in- come on health. I estimate that lower pension did not change the mortality rate. The results are confirmed using both experiments and different meth- ods of estimation. Furthermore, with regard to the expenditure on health services, I get that only prescribed drug consumption increased, with the remaining analyzed factors being unaffected.
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Bibliographic InfoPaper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2011-09.
Length: 32 pages
Date of creation: Jul 2011
Date of revision:
Income; Mortality; Health; Expenditure;
Other versions of this item:
- Mario Schnalzenberger, 2011. "Causal effect of income on health: Investigating two closely related policy reforms in Austria," NRN working papers 2011-06, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
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