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Consequences and Predictors of New Health Events

  • James P. Smith

Smith uses the HRS and AHEAD panels to examine the consequences of new health on a series of SES related outcomes- out-of-pocket labor supply, labor force activity, household income and wealth. For each of these outcomes, new severe health events have a significant effect although most of the impact on income and wealth takes place through labor supply and not not medical expenses. The paper also examines the ability of different measures of SES to predict the future onset of disease. The author finds no predictive effect of income or wealth but education does predict future onset even after controlling for current health status. The reasons for this continuing predictive effect of education are explored in the paper.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10063.

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Date of creation: Nov 2003
Date of revision:
Publication status: published as Consequences and Predictors of New Health Events , James Smith. in Analyses in the Economics of Aging , Wise. 2005
Handle: RePEc:nbr:nberwo:10063
Note: AP
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  1. James P. Smith, 2004. "Why is Wealth Inequality Rising?," Macroeconomics 0402012, EconWPA.
  2. 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.
  3. Smith, J-P & Kington, R, 1997. "Demographic and Economic Correlates of Health in Old Age," Papers 97-06, RAND - Reprint Series.
  4. Anne Case & Darren Lubotsky & Christina Paxson, 2001. "Economic Status and Health in Childhood: The Origins of the Gradient," NBER Working Papers 8344, National Bureau of Economic Research, Inc.
  5. Angus Deaton, 2002. "Health, inequality, and economic development," Working Papers 209, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  6. Dana P. Goldman & James P. Smith, 2004. "Can Patient Self-Management Help Explain the SES Health Gradient?," HEW 0403004, EconWPA.
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