housing deprivation and health status: evidence from Spain?

Living in inadequate housing conditions not only supposes a failure of a basic functioning. It also has effects on other essential aspects of well-being such as health. Very few studies to date have analysed the relationship between both questions making an attempt to assess whether observable or unobservable individual characteristics can condition this relationship. This study questions to what extent living in poor housing conditions can determine individuals’ health status once the possible influence of other factors is controlled for. By estimating a logistic model with individual effects and building-up a housing deprivation index based on a latent variable model, we reach a number of relevant conclusions concerning the mentioned relationship. There is a negative effect of this kind of deprivation on the individuals’ health, both when housing conditions are analysed in a disaggregated manner and when they are combined in a latent variable context. The importance of controlling both observable and unobservable heterogeneity among individuals also stands out. The need for co- ordinating the health care policy with other policies such as the housing one, in order to promote better levels of health can also be inferred from the results.