IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Individual investments in education and health

  • Carbone, Jared C.

    (Department of Economics, University of Calgary)

  • Kverndokk, Snorre

    ()

    (Ragnar Frisch Centre for Economic Research)

Empirical studies show that years of schooling are positively correlated with good health, and that education is better correlated with health than with variables like occupation and income. This can be explained in different ways as the implication may go from education to health, from health to education, and there may be variables that influence health and education in the same direction. The effect of different policy instruments to reduce the social gradient in health will depend on the strength of these causalities. In this paper we formalize a model that simultaneously determines an individual’s demand for knowledge and health based on the mentioned causal effects. We study the impacts on both health and education of different policy instruments such as subsidies on medical care, subsidizing schooling, income tax reduction, lump sum transfers and improving health at young age. Our results indicate that income transfers such as distributional policies may be the best instrument to improve welfare, while subsidies to medical care is the best instrument for longevity. However, subsidies to medical care or education would require large imperfections in the markets for health and education to be more welfare improving than distributional policies. Finally, our simulations suggest that underlying factors that impact both health and education is the main explanation for the correlation shown empirically.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.med.uio.no/helsam/forskning/nettverk/hero/publikasjoner/skriftserie/2014/hero2014-1.pdf
Download Restriction: no

Paper provided by Oslo University, Health Economics Research Programme in its series HERO On line Working Paper Series with number 2014:1.

as
in new window

Length: 55 pages
Date of creation: 01 Mar 2014
Date of revision:
Handle: RePEc:hhs:oslohe:2014_001
Contact details of provider: Postal:
HERO / Institute of Health Management and Health Economics P.O. Box 1089 Blindern, N-0317 Oslo, Norway

Phone: 2307 5309
Fax: 2307 5310
Web page: http://www.hero.uio.no/eng.html
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. de Walque, Damien, 2007. "How does the impact of an HIV/AIDS information campaign vary with educational attainment? Evidence from rural Uganda," Journal of Development Economics, Elsevier, vol. 84(2), pages 686-714, November.
  2. Hui He & Hao Zhang & Tim Halliday, 2010. "Health Investment over the Life-Cycle," 2010 Meeting Papers 1179, Society for Economic Dynamics.
  3. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  4. Carbone, Jared C. & Kverndokk, Snorre & Rogeberg, Ole Jorgen, 2005. "Smoking, health, risk, and perception," Journal of Health Economics, Elsevier, vol. 24(4), pages 631-653, July.
  5. Kevin M. Murphy & Robert H. Topel, 2005. "The Value of Health and Longevity," NBER Working Papers 11405, National Bureau of Economic Research, Inc.
  6. Duha Tore Altindag & Colin Cannonier & Naci H. Mocan, 2010. "The Impact of Education on Health Knowledge," NBER Working Papers 16422, National Bureau of Economic Research, Inc.
  7. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  8. Frijters, Paul & Haisken-DeNew, John P. & Shields, Michael A., 2005. "The causal effect of income on health: Evidence from German reunification," Journal of Health Economics, Elsevier, vol. 24(5), pages 997-1017, September.
  9. Giorgio Brunello & Margherita Fort & Nichole Schneeweis & Rudolf Winter-Ebmer, 2011. "The Causal Effect of Education on Health: What is the Role of Health Behaviors?," Economics working papers 2011-06, Department of Economics, Johannes Kepler University Linz, Austria, revised Nov 2011.
  10. Ainhoa Aparicio & Libertad González, 2014. "Newborn Health and the Business Cycle: Is it Good to be Born in Bad Times?," Working Papers 702, Barcelona Graduate School of Economics.
  11. Anne Case & Christina Paxson, 2010. "The Long Reach of Childhood Health and Circumstance: Evidence from the Whitehall II Study," NBER Working Papers 15640, National Bureau of Economic Research, Inc.
  12. Mikael Lindahl, 2005. "Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
  13. Apouey, Bénédicte & Clark, Andrew E., 2010. "Winning Big but Feeling No Better? The Effect of Lottery Prizes on Physical and Mental Health," IZA Discussion Papers 4730, Institute for the Study of Labor (IZA).
  14. Sarah Dahmann, 2015. "How Does Education Improve Cognitive Skills? Instructional Time versus Timing of Instruction," SOEPpapers on Multidisciplinary Panel Data Research 769, DIW Berlin, The German Socio-Economic Panel (SOEP).
  15. Dahmann, Sarah, 2015. "How does education improve cognitive skills? Instructional Time versus Timing of Instruction," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112917, Verein für Socialpolitik / German Economic Association.
  16. Hendrik Jürges & Eberhard Kruk & Steffen Reinhold, 2010. "The Effect of Compulsory Schooling on Health - Evidence from Biomarkers," CESifo Working Paper Series 3105, CESifo Group Munich.
  17. Avdic, Danie, 2015. "A matter of life and death? Hospital distance and quality of care: evidence from emergency hospital closures and myocardial infarctions," Working Paper Series 2015:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  18. Joshua J. Robinson, 2014. "Sound Body, Sound Mind?," CINCH Working Paper Series 1403, Universitaet Duisburg-Essen, Competent in Competition and Health.
  19. M. Christopher Auld & Nirmal Sidhu, 2005. "Schooling, cognitive ability and health," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1019-1034.
  20. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
  21. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  22. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
  23. de Walque, Damien, 2007. "Does education affect smoking behaviors?: Evidence using the Vietnam draft as an instrument for college education," Journal of Health Economics, Elsevier, vol. 26(5), pages 877-895, September.
  24. Meghir, Costas & Palme, Mårten & Simeonova, Emilia, 2012. "Education, Health and Mortality: Evidence from a Social Experiment," Research Papers in Economics 2012:4, Stockholm University, Department of Economics.
  25. Joan Costa-i-Font & Martin Karlsson & Henning Øien, 2015. "Informal care and the great recession," LSE Research Online Documents on Economics 62606, London School of Economics and Political Science, LSE Library.
  26. James P. Smith, 2007. "The Impact of Socioeconomic Status on Health over the Life-Course," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).
  27. Ngina Chiteji, 2010. "Time Preference, Noncognitive Skills and Well Being across the Life Course: Do Noncognitive Skills Encourage Healthy Behavior?," American Economic Review, American Economic Association, vol. 100(2), pages 200-204, May.
  28. Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004. "Healthy, Wealthy, and Wise? Tests for Direct Causal Paths between Health and Socioeconomic Status," NBER Chapters, in: Perspectives on the Economics of Aging, pages 415-526 National Bureau of Economic Research, Inc.
  29. Michael, Robert T, 1973. "Education in Nonmarket Production," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 306-27, Part I, M.
  30. Michael Grossman, 2003. "Household Production and Health," Review of Economics of the Household, Springer, vol. 1(4), pages 331-342, December.
  31. de Walque, Damien, 2004. "Education, information, and smoking decisions : evidence from smoking histories, 1940-2000," Policy Research Working Paper Series 3362, The World Bank.
  32. Sarah Dahmann, 2015. "How Does Education Improve Cognitive Skills? - Instructional Time versus Timing of Instruction," CINCH Working Paper Series 1504, Universitaet Duisburg-Essen, Competent in Competition and Health, revised Apr 2015.
  33. Ryan D. Edwards, 2010. "Health, Income, and the Timing of Education Among Military Retirees," NBER Working Papers 15778, National Bureau of Economic Research, Inc.
  34. Galama, Titus & van Kippersluis, Hans, 2015. "A Theory of Education and Health," Working Papers 1094, RAND Corporation.
  35. Paul Contoyannis & Andrew M. Jones & Nigel Rice, 2004. "The dynamics of health in the British Household Panel Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 473-503.
  36. repec:pri:rpdevs:case_and_paxson_whitehall_jan_2011 is not listed on IDEAS
  37. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
  38. Cutler, David M. & Lleras-Muney, Adriana, 2010. "Understanding Differences in Health Behaviors by Education," Scholarly Articles 5344195, Harvard University Department of Economics.
  39. Resul Cesur & Inas Rashad, 2008. "High Birth Weight and Cognitive Outcomes," NBER Working Papers 14524, National Bureau of Economic Research, Inc.
  40. Chapman, Kenneth S & Hariharan, Govind, 1996. "Do Poor People Have a Stronger Relationship between Income and Mortality Than the Rich? Implications of Panel Data for Health-Health Analysis," Journal of Risk and Uncertainty, Springer, vol. 12(1), pages 51-63, January.
  41. Jon Gjerde & Sverre Grepperud & Snorre Kverndokk, 2005. "On adaptation and the demand for health," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1283-1301.
  42. Muurinen, Jaana-Marja, 1982. "Demand for health: A generalised Grossman model," Journal of Health Economics, Elsevier, vol. 1(1), pages 5-28, May.
  43. Ciro Avitabile & Tullio Jappelli & Mario Padula, 2008. "Screening Tests, Information, and the Health-Education Gradient," CSEF Working Papers 187, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 28 Apr 2008.
  44. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
  45. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  46. Douglas Almond & Kenneth Y. Chay & David S. Lee, 2005. "The Costs of Low Birth Weight," The Quarterly Journal of Economics, Oxford University Press, vol. 120(3), pages 1031-1083.
  47. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 729-758.
  48. repec:pri:cheawb:case_and_paxson_whitehall_jan_2011 is not listed on IDEAS
  49. Marjon van der Pol, 2011. "Health, education and time preference," Health Economics, John Wiley & Sons, Ltd., vol. 20(8), pages 917-929, 08.
  50. Petter Lundborg, 2013. "The health returns to schooling—what can we learn from twins?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 673-701, April.
  51. Jan Goebel & Christian Krekel & Tim Tiefenbach & Nicholas R. Ziebarth, 2014. "Natural Disaster, Environmental Concerns, Well-Being and Policy Action," CINCH Working Paper Series 1405, Universitaet Duisburg-Essen, Competent in Competition and Health.
  52. Anna Aizer & Laura Stroud, 2010. "Education, Knowledge and the Evolution of Disparities in Health," NBER Working Papers 15840, National Bureau of Economic Research, Inc.
  53. Sherry Glied & Adriana Lleras-Muney, 2008. "Technological innovation and inequality in health," Demography, Springer;Population Association of America (PAA), vol. 45(3), pages 741-761, August.
  54. Rucker C. Johnson, 2011. "Long-run Impacts of School Desegregation & School Quality on Adult Attainments," NBER Working Papers 16664, National Bureau of Economic Research, Inc.
  55. Cutler, David M. & Lleras-Muney, Adriana, 2010. "Understanding differences in health behaviors by education," Journal of Health Economics, Elsevier, vol. 29(1), pages 1-28, January.
  56. John Karl Scholz & Ananth Seshadri, 2010. "Health and Wealth in a Life Cycle Model," Working Papers wp224, University of Michigan, Michigan Retirement Research Center.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hhs:oslohe:2014_001. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anbjørg Kolaas)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.