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, comparing 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 income on health. I estimate that lower pension did not change the mortality rate. The results are confirmed using both experiments and different methods 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 The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria in its series NRN working papers with number 2011-06.
Length: 32 pages
Date of creation: Jul 2011
Date of revision:
Contact details of provider:
Postal: NRN Labor Economics and the Welfare State, c/o Rudolf Winter-Ebmer, Altenbergerstr. 69, 4040 Linz
Web page: http://www.labornrn.at/
More information through EDIRC
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," Economics working papers 2011-09, Department of Economics, 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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