The Impact of Aggregate and Idiosyncratic Income Shocks on Health Outcomes: Evidence from the PSIDNo 200606, Working Papers from University of Hawaii at Manoa, Department of Economics Abstract: In this paper, we investigate the impact of aggregate and idiosyncratic economic shocks on health using data on self-reported health status and mortality from the Panel Study of Income Dynamics. First, we document a large correlation between poor macroeconomic conditions and mortality for working-aged men. This correlation is robust to controls for baseline health which mitigates concerns that the correlation is the result of selection. There is no relationship between macroeconomic conditions and mortality for women. Next, to better understand how much of this correlation is the result of a causal impact of income shocks on health, we use methods from the literature on dynamic panel data models. Doing this, we find evidence of a causal impact of income shocks on health for working-aged men at the lowest parts of the income distribution. Finally, our analysis provides no evidence that recessions are good for your health. Keywords: gradient; recessions; health; dynamic panel data models (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:hai:wpaper:200606 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in Working Papers from University of Hawaii at Manoa, Department of Economics |
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