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Poor And Sick: Estimating The Relationship Between Household Income And Health

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  • ATHINA ECONOMOU
  • IOANNIS THEODOSSIOU

Abstract

This study evaluates the effect of the individual‘s household income on their health at the later stages of working life. A structural equation model is utilised in order to derive a composite and continuous index of the latent health status from qualitative health status indicators. The endogenous relationship between health status and household income status is taken into account by using IV estimators. The findings reveal a significant effect of individual household income on health before and after endogeneity is taken into account and after a host of other factors which is known to influence health, including hereditary factors and the individual‘s locus of control. Importantly, it is also shown that the childhood socioeconomic position of the individual has long lasting effects on health as it appears to play a significant role in determining health during the later stages of working life.
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  • Athina Economou & Ioannis Theodossiou, 2011. "Poor And Sick: Estimating The Relationship Between Household Income And Health," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 395-411, September.
  • Handle: RePEc:bla:revinw:v:57:y:2011:i:3:p:395-411
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    Cited by:

    1. Bárcena, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2016. "The socioeconomic gradient in health: The role of intra-household resource allocation," Working Papers in Economic Theory 2016/06, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    2. Emmanuel Duguet & Christine Le Clainche, 2014. "The Effect of Non-Work Related Health Events on Career Outcomes: An Evaluation in the French Labor Market," Revue d'économie politique, Dalloz, vol. 124(3), pages 437-465.
    3. Maite Blázquez & Elena Cottini & Ainhoa Herrarte, 2014. "The socioeconomic gradient in health: how important is material deprivation?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 239-264, June.
    4. Belayet Hossain & Laura Lamb, 2012. "The Impact of Human and Social Capital on Aboriginal Employment Income in Canada," Economic Papers, The Economic Society of Australia, vol. 31(4), pages 440-450, December.
    5. Dr Silvia Lui & Dr Martin Weale, 2012. "The Trade-off between Income and Smoking as Influences on Mortality: Evidence from the British Household Panel Survey for Men and Women aged Sixty-five and Over," National Institute of Economic and Social Research (NIESR) Discussion Papers 395, National Institute of Economic and Social Research.
    6. Elena Bárcena-Martín & Maite Blázquez & Ana I. Moro Egido, 2017. "Intra-household allocation of resources and decision-making. How important are in terms of individual well-being?," ThE Papers 17/03, Department of Economic Theory and Economic History of the University of Granada..
    7. Maite Blázquez Cuesta & Santiago Budría, 2013. "Does income deprivation affect people’s mental well-being?," Working Papers 1312, Banco de España;Working Papers Homepage.
    8. Dr Silvia Lui & Dr Martin Weale, 2012. "Education and its Effects on Survival, Income and Health of those aged Sixty-five and over in the United Kingdom," National Institute of Economic and Social Research (NIESR) Discussion Papers 393, National Institute of Economic and Social Research.
    9. Dorsett, Richard & Lui, Silvia & Weale, Martin, 2014. "Education and its effects on income and mortality of men aged sixty-five and over in Great Britain," Labour Economics, Elsevier, vol. 27(C), pages 71-82.
    10. Dr Silvia Lui & Dr Martin Weale, 2011. "Education and its Effects on the Income, Health and Survival of those aged Sixty-five and Over (This paper has been revised and is replaced by DP 393)," National Institute of Economic and Social Research (NIESR) Discussion Papers 383, National Institute of Economic and Social Research.
    11. Stefan Angel, 2016. "The Effect of Over-Indebtedness on Health: Comparative Analyses for Europe," Kyklos, Wiley Blackwell, vol. 69(2), pages 208-227, May.

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