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What Roles Do Contemporaneous And Cumulative Incomes Play In The Income–Child Health Gradient For Young Children? Evidence From An Australian Panel

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  • Rasheda Khanam
  • Hong Son Nghiem
  • Luke Brian Connelly

Abstract

The literature to date shows that children from poorer households tend to have worse health than their peers, and the gap between them grows with age. We investigate whether and how health shocks (as measured by the onset of chronic conditions) contribute to the income–child health gradient and whether the contemporaneous or cumulative effects of income play important mitigating roles. We exploit a rich panel dataset with three panel waves called the Longitudinal Study of Australian children. Given the availability of three waves of data, we are able to apply a range of econometric techniques (e.g. fixed and random effects) to control for unobserved heterogeneity. The paper makes several contributions to the extant literature. First, it shows that an apparent income gradient becomes relatively attenuated in our dataset when the cumulative and contemporaneous effects of household income are distinguished econometrically. Second, it demonstrates that the income–child health gradient becomes statistically insignificant when controlling for parental health and health‐related behaviours or unobserved heterogeneity. Copyright © 2013 John Wiley & Sons, Ltd.

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  • Rasheda Khanam & Hong Son Nghiem & Luke Brian Connelly, 2014. "What Roles Do Contemporaneous And Cumulative Incomes Play In The Income–Child Health Gradient For Young Children? Evidence From An Australian Panel," Health Economics, John Wiley & Sons, Ltd., vol. 23(8), pages 879-893, August.
  • Handle: RePEc:wly:hlthec:v:23:y:2014:i:8:p:879-893
    DOI: 10.1002/hec.2961
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    Cited by:

    1. Huong Thu Le & Ha Trong Nguyen, 2015. "Intergenerational Transmission in Health: Causal estimates from fixed effects instrumental variables models for two cohorts of Australian children," Bankwest Curtin Economics Centre Working Paper series WP1509, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    2. Rasheda Khanam & Son Nghiem & Maisha Rahman, 2020. "The income gradient and child mental health in Australia: does it vary by assessors?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(1), pages 19-36, February.
    3. Vu, Xuan-Binh (Benjamin) & Biswas, Raaj Kishore & Khanam, Rasheda & Rahman, Maisha, 2018. "Mental health service use in Australia: The role of family structure and socio-economic status," Children and Youth Services Review, Elsevier, vol. 93(C), pages 378-389.
    4. Jason Murasko, 2015. "The Age Profile of the Income–Health Gradient: An Evaluation of Two Large Cohorts of Contemporary US Children," Journal of Family and Economic Issues, Springer, vol. 36(2), pages 289-298, June.
    5. Rasheda Khanam & Son Nghiem, 2017. "Family Income and Child Cognitive Development: A Response to Marks," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 809-812, April.
    6. Rasheda Khanam & Son Nghiem, 2016. "Family Income and Child Cognitive and Noncognitive Development in Australia: Does Money Matter?," Demography, Springer;Population Association of America (PAA), vol. 53(3), pages 597-621, June.

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