Health and Wages: Panel Evidence on Men and Women using IV Quantile Regression
AbstractUsing panel data from a developing country on individuals aged 16 to 59 who reported their monthly wages, we estimated a relationship between health (nutrition) measures (i.e. height and BMI) and wages (which proxies productivity/growth). We controlled for endogeneity of BMI and found heterogeneous returns to different human capital indicators. Our findings indicate that productivity is positively and significantly affected by education, height and BMI. The return to BMI is important both at the lower and upper end of the wage distribution for men while women at the upper end of the distribution suffer a wage penalty due to BMI. Height has been a significant factor affecting men’s productivity but not women. The results in general support the high-nutrition and high- productivity equilibrium story. Returns to schooling showed a declining trend as we move from lower to higher quantiles for both sub-samples. This might suggest that schooling is more beneficial for the less able. In addition, the returns to schooling of women are higher than men. The results have important implications for policy making in the form of nutrition interventions and targeted education on women.
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Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 08/37.
Date of creation: Oct 2008
Date of revision:
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Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK
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Web page: http://www2.le.ac.uk/departments/economics
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Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-04 (All new papers)
- NEP-EDU-2008-11-04 (Education)
- NEP-HEA-2008-11-04 (Health Economics)
- NEP-HRM-2008-11-04 (Human Capital & Human Resource Management)
- NEP-LAB-2008-11-04 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charles L. Baum & William F. Ford, 2004. "The wage effects of obesity: a longitudinal study," Health Economics, John Wiley & Sons, Ltd., vol. 13(9), pages 885-899.
- Omar Arias & Walter Sosa-Escudero & Kevin F. Hallock, 2001.
"Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins data,"
Springer, vol. 26(1), pages 7-40.
- Omar Arias & Kevin F. Hallock & Walter Sosa Escudero, 1999. "Individual Heterogeneity in the Returns to Schooling: Instrumental Variables Quantile Regression using Twins Data," Department of Economics, Working Papers 016, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
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