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Estimating Interdependence Between Health and Education in a Dynamic Model

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  • Li Gan
  • Guan Gong

Abstract

This paper investigates to what extent and through which channels that health and educational attainment are interdependent. A dynamic model of schooling, work, health expenditure, and savings is developed. The structural framework explicitly models two existing hypotheses on the correlation between health and education. The estimation results strongly support the interdependence between health and education. In particular, the estimated model indicates that an individual's education, health expenditure, and previous health status all affect his health status. Moreover, the individual's health status affects his mortality rate, wage, home production, and academic success. On average, having been sick before age 21 decreases the individual's education by 1.4 years. Policy experiments indicate that a health expenditure subsidy would have a larger impact on educational attainment than a tuition subsidy.

Suggested Citation

  • Li Gan & Guan Gong, 2007. "Estimating Interdependence Between Health and Education in a Dynamic Model," NBER Working Papers 12830, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:12830
    Note: AG CH EH LS
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    Cited by:

    1. Elena Capatina, 2012. "Life Cycle Effects of Health Risk," Working Papers 201216, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
    2. Margarida Chagas Lopes, 2012. "Education, Development and Knowledge: New Forms of Unequal Change Under Globalization – The Case of SSA Countries," The IUP Journal of Knowledge Management, IUP Publications, vol. 0(2), pages 45-60, April.
    3. Neha Kumra, 2017. "Childhood health and educational investment under risk," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.
    4. Bruins, Marianne & Duffy, James A. & Keane, Michael P. & Smith, Anthony A., 2018. "Generalized indirect inference for discrete choice models," Journal of Econometrics, Elsevier, vol. 205(1), pages 177-203.
    5. Zou, Wei & Cheng, Bo, 2023. "Can rural health insurance coverage improve educational attainment? Evidence from new cooperative medical scheme in China," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 689-704.
    6. Saima Nawaz & Nasir Iqbal, 2016. "Education Poverty in Pakistan: A Spatial Analysis at District Level," Indian Journal of Human Development, , vol. 10(2), pages 270-287, August.
    7. Daniel Gladwell & Gurleen Popli & Aki Tsuchiya, 2022. "Predictors of becoming not in education, employment or training: A dynamic comparison of the direct and indirect determinants," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(S2), pages 485-514, December.
    8. Capatina, Elena, 2015. "Life-cycle effects of health risk," Journal of Monetary Economics, Elsevier, vol. 74(C), pages 67-88.
    9. Driouchi, Ahmed & Boboc, Cristina & Zouag, Nada, 2009. "Interdependencies of Health, Education and Poverty: The Case of South Mediterranean Economies/Interdependencias de salud, educación y pobreza: el caso de las Economías Sur-Mediterráneas," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 523-544, Agosto.

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    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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