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Disentangling the Contemporaneous and Dynamic Effects of Human and Health Capital on Wages over the Life Cycle

Listed author(s):
  • Donna B. Gilleskie
  • Euna Han
  • Edward C. Norton

In this study we quantify the life-cycle effects of human and health capital on the wage distribution of females, with a focus on health measured by body mass. We use NLSY79 data on women followed annually up to twenty years during the time of their lives when average annual weight gain is greatest. We allow body mass to explain variation in wages contemporaneously conditional on observed measures of human capital and productivity histories (namely, education, employment experience, marital status, and family size) and dynamically over the life cycle through its impact on the endogenous histories of behaviors that determine wages. We find significant differences in the contemporaneous effect and the dynamic effect of body mass on wages, both across females of different races and over the distribution of wages.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 22430.

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Date of creation: Jul 2016
Publication status: published as Donna Gilleskie & Euna Han & Edward Norton, 2017. "Disentangling the Contemporaneous and Dynamic Effects of Human and Health Capital on Wages over the Life Cycle"," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 25, pages 350-383, April.
Handle: RePEc:nbr:nberwo:22430
Note: HC HE
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  1. Gilleskie, Donna B. & Mroz, Thomas A., 2004. "A flexible approach for estimating the effects of covariates on health expenditures," Journal of Health Economics, Elsevier, vol. 23(2), pages 391-418, March.
  2. Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
  3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  4. Pierre-André Chiappori & Sonia Oreffice & Climent Quintana-Domeque, 2012. "Fatter Attraction: Anthropometric and Socioeconomic Matching on the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 120(4), pages 659-695.
  5. Wada, Roy & Tekin, Erdal, 2010. "Body composition and wages," Economics & Human Biology, Elsevier, vol. 8(2), pages 242-254, July.
  6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, October.
  7. Meliyanni Johar & Hajime Katayama, 2012. "Quantile regression analysis of body mass and wages," Health Economics, John Wiley & Sons, Ltd., vol. 21(5), pages 597-611, 05.
  8. Paraponaris, Alain & Saliba, Berengere & Ventelou, Bruno, 2005. "Obesity, weight status and employability: Empirical evidence from a French national survey," Economics & Human Biology, Elsevier, vol. 3(2), pages 241-258, July.
  9. Pinkston, Joshua, 2015. "The Dynamic Effects of Obesity on the Wages of Young Workers," MPRA Paper 64641, University Library of Munich, Germany.
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