Mortality, Human Capital and Persistent Inequality

Shankha Chakraborty () and Mausumi Das ()

Journal of Economic Growth, 2005, vol. 10, issue 2, pages 159-192

Abstract: Available evidence suggests high intergenerational correlation of economic status and persistent disparities in health status between the rich and the poor. This paper proposes a mechanism linking the two. We introduce health capital into a two-period overlapping generations model. Private health investment improves the probability of surviving from the first period of life to the next and, along with education, enhances an individual’s labor productivity. Poorer parents are of poor health, unable to invest much in reducing mortality risk and improving their human capital. Consequently, they leave less for their progeny. Despite convex preferences and technologies, initial differences in economic and health status may perpetuate across generations when annuities markets are imperfect. Copyright Springer 2005

Keywords: life expectancy; health; human capital; income distribution; I12; I20; O15 (search for similar items in EconPapers)
Date: 2005
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Related works:
Working Paper: Mortality, Human Capital and Persistent Inequality (2003)
Working Paper: Mortality, Human Capital and Persistent Inequality (2003)
Working Paper: Mortality, Human Capital and Persistent Inequality (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:kap:jecgro:v:10:y:2005:i:2:p:159-192

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