Estimates of the demand for health: Males in the pre-retirement years

David Lairson, Ronald Lorimor and Carl Slater

Social Science & Medicine, 1984, vol. 19, issue 7, 741-747

Abstract: The demand for health is estimated for black and white males in the pre-retirement years using data from the first wave of 1966 National Longitudinal Survey of men aged 45-59. This survey includes direct measures of the wage rate and family assets. Findings for whites generally corroborate Grossman's initial estimates of the demand for health. In contrast to whites, blacks show a much stronger wage effect and a significant positive effect of wife's education, with no other factors being significant. The issue of reverse causality between the wage and health is addressed via a simultaneous equations health-wage model. Contrary to expected, but consistent with previous findings, the structural model yielded an even larger wage effect.

Date: 1984
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