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Health Inequality over the Life-Cycle

  • Halliday, Timothy J.


    (University of Hawaii at Manoa)

We investigate the evolution of health inequality over the life-course. Health is modeled as a latent variable that is determined by three factors: endowments, and permanent and transitory shocks. We employ Simulated Minimum Distance and the Panel Study of Income Dynamics to estimate the model. We estimate that permanent shocks account for under 10% of the total variation in health for the college educated, but between 35% and 70% of total health variability for people without college degrees. Consistent with this, we find that health inequality moves substantially more slowly over the life-course for the college educated.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4369.

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Length: 33 pages
Date of creation: Aug 2009
Date of revision:
Publication status: published in: BE Journal of Economic Analysis and Policy, 2011, 11(3), Article 5
Handle: RePEc:iza:izadps:dp4369
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  9. Timothy J. Halliday, 2006. "Testing for State Dependence with Time-Variant Transition Probabilities," Working Papers 200614, University of Hawaii at Manoa, Department of Economics.
  10. Jérôme Adda & James Banks & Hans-Martin von Gaudecker, 2009. "The Impact of Income Shocks on Health: Evidence from Cohort Data," Journal of the European Economic Association, MIT Press, vol. 7(6), pages 1361-1399, December.
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