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A Fresh Look at the Health-Wealth Correlation: A Case Study of European Countries

Author

Listed:
  • García-Muñoz, Teresa

    (Universidad de Granada)

  • Neuman, Shoshana

    (Bar-Ilan University)

  • Neuman, Tzahi

    (Hebrew University, Jerusalem)

Abstract

This paper contributes to the development-health literature by studying the correlation between development measures (see below) and health measures - one subjective ('self-assessed-health-status'), and the other one objective (the individual's 'number of chronic diseases'). Correlations are examined for 29 European countries, using the SHARE data set, and country-level development measures. Specifically, we examine whether country fixed-effects in regressions of health measures, controlling for individual socio-demographic variables, are significantly correlated with country development variables, which include: logarithm of per-capita GDP; the Human Development Index; the Social Progress Index; life expectancy; percentage of GDP spent on health; and the novel measure expressed by the Environmental Health Index. The novelty of our study is the introduction of a channel for the significant health-wealth correlation, speculating that the driving forces are psychological.

Suggested Citation

  • García-Muñoz, Teresa & Neuman, Shoshana & Neuman, Tzahi, 2019. "A Fresh Look at the Health-Wealth Correlation: A Case Study of European Countries," IZA Discussion Papers 12673, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12673
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    References listed on IDEAS

    as
    1. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January.
    2. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    3. Guillermina Jasso & Douglas S. Massey & Mark Rosenzweig & James Smith, 2004. "Immigrant health: selectivity and acculturation," IFS Working Papers W04/23, Institute for Fiscal Studies.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    development; self-assessed-health-status; diseases; environmental hazards; psychological motives; SHARE; Europe;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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    This paper has been announced in the following NEP Reports:

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