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Evaluating the Role of Individual Specific Heterogeneity in the Relationship Between Subjective Health Assessments and Income

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  • Fernández-Val, Iván

    (Boston University)

  • Savchenko, Yevgeniya

    (Georgetown University)

  • Vella, Francis

    (Georgetown University)

Abstract

This paper investigates the impact of income on an individual's subjective self-assessment of own health. We employ recently developed methods in the non linear panel data literature to account for the endogeneity of income and the presence of individual heterogeneity. We examine a panel data set of individuals living in Australia and find no statistically significant relationship between income and health responses. Moreover, the evidence suggests that the variation in the individual specific effects, comprising both observed and unobserved time invariant factors, is primarily responsible for the variation across individuals' responses.

Suggested Citation

  • Fernández-Val, Iván & Savchenko, Yevgeniya & Vella, Francis, 2013. "Evaluating the Role of Individual Specific Heterogeneity in the Relationship Between Subjective Health Assessments and Income," IZA Discussion Papers 7651, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7651
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    References listed on IDEAS

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    Cited by:

    1. Fernández-Val, Iván & Savchenko, Yevgeniya & Vella, Francis, 2017. "Evaluating the role of income, state dependence and individual specific heterogeneity in the determination of subjective health assessments," Economics & Human Biology, Elsevier, vol. 25(C), pages 85-98.
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    3. Bellmann, Lutz & Hübler, Olaf, 2019. "Personal Attitudes, Job Characteristics and Health," IZA Discussion Papers 12597, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    non linear panel data models; subjective health assessments; fixed effects;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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