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Poor and Sick: Estimating the relationship between Household Income and Health

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  • Economou, Athina
  • Theodossiou, Ioannis

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.

Suggested Citation

  • Economou, Athina & Theodossiou, Ioannis, 2010. "Poor and Sick: Estimating the relationship between Household Income and Health," SIRE Discussion Papers 2010-121, Scottish Institute for Research in Economics (SIRE).
    • Handle: RePEc:edn:sirdps:360
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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. Kim, Hoolda & Mitra, Sophie, 2022. "Dynamics of health and labor income in Korea," The Journal of the Economics of Ageing, Elsevier, vol. 21(C).
    4. Maite Blázquez & Santiago Budría, 2018. "The Effects of Over-indebtedness on Individual Health," Hacienda Pública Española / Review of Public Economics, IEF, vol. 227(4), pages 103-131, December.
    5. Du Juan & Leigh J. Paul, 2018. "Effects of Minimum Wages on Absence from Work Due to Illness," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(1), pages 1-23, January.
    6. Otto Lenhart, 2019. "The effects of income on health: new evidence from the Earned Income Tax Credit," Review of Economics of the Household, Springer, vol. 17(2), pages 377-410, June.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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..
    12. 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.
    13. Maite Blázquez Cuesta & Santiago Budría, 2013. "Does income deprivation affect people’s mental well-being?," Working Papers 1312, Banco de España.
    14. 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.
    15. 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.
    16. Bárcena-Martín, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2020. "Intra-household arrangements: How important are they in terms of male-female subjective well-being?," Journal of Economic Psychology, Elsevier, vol. 80(C).
    17. 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.
    18. Blázquez, Maite & Budría, Santiago & Moro-Egido, Ana I., 2020. "Over-indebtedness and age: The effects on individual health," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    19. 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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