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Testing for an economic gradient in health status using subjective data

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  • Michael Lokshin

    (Development Research Group, World Bank, Washington, DC, USA)

  • Martin Ravallion

    (Development Research Group, World Bank, Washington, DC, USA)

Abstract

Can self-assessments of health reveal the true health differentials between 'rich' and 'poor'? The potential sources of bias include psychological adaptation to ill-health, socioeconomic covariates of health reporting errors and income measurement errors. We propose an estimation method to reduce the bias by isolating the component of self-assessed health that is explicable in terms of objective health indicators and allowing for broader dimensions of economic welfare than captured by current incomes. On applying our method to survey data for Russia we find a pronounced (nonlinear) economic gradient in health status that is not evident in the raw data. This is largely attributable to the health effects of age, education and location. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Michael Lokshin & Martin Ravallion, 2008. "Testing for an economic gradient in health status using subjective data," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1237-1259.
  • Handle: RePEc:wly:hlthec:v:17:y:2008:i:11:p:1237-1259 DOI: 10.1002/hec.1318
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    References listed on IDEAS

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    Cited by:

    1. Raj Arunachalam & Manisha Shah, 2013. "Compensated for Life: Sex Work and Disease Risk," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 345-369.
    2. Maria Ana Lugo & Koen Decancq, 2009. "Measuring Inequality of Well-Being with a Correlation-Sensitive Multidimensional Gini Index," Economics Series Working Papers 459, University of Oxford, Department of Economics.
    3. Baron-Epel, Orna & Kaplan, Giora, 2009. "Can subjective and objective socioeconomic status explain minority health disparities in Israel?," Social Science & Medicine, Elsevier, vol. 69(10), pages 1460-1467, November.
    4. Koen Decancq, 2014. "Copula-based measurement of dependence between dimensions of well-being," Oxford Economic Papers, Oxford University Press, vol. 66(3), pages 681-701.
    5. ZHAO, Guochang, 2015. "Can money ‘buy’ schooling achievement? Evidence from 19 Chinese cities," China Economic Review, Elsevier, vol. 35(C), pages 83-104.
    6. Jishnu Das & Quy-Toan Do & Jed Friedman & David McKenzie, 2008. "Mental Health Patterns and Consequences: Results from Survey Data in Five Developing Countries," World Bank Economic Review, World Bank Group, vol. 23(1), pages 31-55, August.
    7. Ravallion, Martin, 2012. "Poor, or just feeling poor ? on using subjective data in measuring poverty," Policy Research Working Paper Series 5968, The World Bank.
    8. Kiendrebeogo,Youssouf & Ianchovichina,Elena, 2016. "Who supports violent extremism in developing countries ? analysis of attitudes based on value surveys," Policy Research Working Paper Series 7691, The World Bank.
    9. Ravallion, Martin & Himelein, Kristen & Beegle, Kathleen, 2013. "Can subjective questions on economic welfare be trusted ? evidence for three developing countries," Policy Research Working Paper Series 6726, The World Bank.
    10. Christopher J. Gerry & Georgios Papadopoulos, 2015. "Sample attrition in the RLMS, 2001–10," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(2), pages 425-468, April.
    11. Nazim Habibov & Elvin Afandi, 2016. "Does Life Satisfaction Determine Subjective Health?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 11(2), pages 413-428, June.

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