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Health Inequality over the Life-Cycle

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  • Timothy Halliday

    () (Department of Economics, University of Hawaii at Manoa)

Abstract

We consider the covariance structure of health. Agents report their health status on the basis of a latent health stock that is determined by permanent and transitory shocks, and time invariant fixed effects. At age 25, permanent shocks account for 5% to 10% of the variation in health. At age 60, this percentage rise to between 60% and 80%. We document a gradient in which permanent shocks matter less for college-educated people and for women.

Suggested Citation

  • Timothy Halliday, 2011. "Health Inequality over the Life-Cycle," Working Papers 201108, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:201108
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_11-8.pdf
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    References listed on IDEAS

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    Cited by:

    1. J. Gimenez-Nadal & Jose Molina, 2016. "Health inequality and the uses of time for workers in Europe: policy implications," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-18, December.
    2. Arjen Hussem & Casper Ewijk & Harry Rele & Albert Wong, 2016. "The Ability to Pay for Long-Term Care in the Netherlands: A Life-cycle Perspective," De Economist, Springer, vol. 164(2), pages 209-234, June.

    More about this item

    Keywords

    health; dynamic panel data models; variance decomposition;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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