The Impact of Income Shocks on Health: Evidence from Cohort Data
We study the effect of permanent income innovations on health for a prime-aged population. Using information on more than half a million individuals sampled over a twenty-five year period in three different cross-sectional surveys we aggregate data by date-of-birth cohort to construct a ‘synthetic cohort’ dataset with details of income, expenditure, socio-demographic factors, health outcomes and selected risk factors. We then exploit structural and arguably exogenous changes in cohort incomes over the eighties and nineties to uncover causal effects of permanent income shocks on health. We find that such income innovations have little effects on a wide range of health measures, but do lead to increases in mortality and risky health behaviour.
|Date of creation:||Jan 2008|
|Date of revision:|
|Publication status:||published in: Journal of the European Economic Association, 2009, 7 (6), 1361 - 1399|
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- Angus S. Deaton & Christina Paxson, 2001.
"Mortality, Education, Income, and Inequality among American Cohorts,"
in: Themes in the Economics of Aging, pages 129-170
National Bureau of Economic Research, Inc.
- Angus Deaton & Christina Paxson, 1999. "Mortality, Education, Income, and Inequality among American Cohorts," NBER Working Papers 7140, National Bureau of Economic Research, Inc.
- Ruhm, Christopher J., 2003.
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IZA Discussion Papers
711, Institute for the Study of Labor (IZA).
- Ruhm, Christopher J., 2003. "Good times make you sick," Journal of Health Economics, Elsevier, vol. 22(4), pages 637-658, July.
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