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The income-health gradient: evidence from self-reported health and biomarkers using longitudinal data on income

Listed author(s):
  • Davillas, Apostolos
  • Jones, Andrew M.
  • Benzeval, Michaela

 This paper adds to the literature on the income-health gradient by exploring the association of short- and long-term income with a wide set of self-reported health measures and objective nurse-administered and blood-based biomarkers as well as employing estimation techniques that allow for analysis “beyond the mean†and accounting for unobserved heterogeneity. The income-health gradients are greater in magnitude in case of long-run rather than cross- sectional income measures. Unconditional quantile regressions reveal that the differences between the long-run and the short-run income gradients are more evident towards the right tails of the distributions, where both higher risk of illnesses and steeper income gradients are observed. A two-step estimator, involving a fixed-effects income model at the first stage, shows that the individual-specific selection effects have a systematic impact in the long-run income gradients in self-reported health but not in biomarkers, highlighting the importance of reporting error in self-reported health.

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File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2017-03.pdf
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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2017-03.

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Date of creation: 16 Mar 2017
Publication status: published
Handle: RePEc:ese:iserwp:2017-03
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