The Impact of Income Shocks on Health: Evidence from Cohort Data

Jerome Adda, James Banks and Hans-Martin von Gaudecker

No 3329, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effect of permanent income innovations on health for a prime-aged population. Using information on more than half a million individuals sampled over a twenty-five year period in three different cross-sectional surveys we aggregate data by date-of-birth cohort to construct a ‘synthetic cohort’ dataset with details of income, expenditure, socio-demographic factors, health outcomes and selected risk factors. We then exploit structural and arguably exogenous changes in cohort incomes over the eighties and nineties to uncover causal effects of permanent income shocks on health. We find that such income innovations have little effects on a wide range of health measures, but do lead to increases in mortality and risky health behaviour.

Keywords: income shocks; health (search for similar items in EconPapers)
JEL-codes: I1 J3 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2008-01
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (24)

Published - published in: Journal of the European Economic Association, 2009, 7 (6), 1361 - 1399

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Related works:
Journal Article: The Impact of Income Shocks on Health: Evidence from Cohort Data (2009)
Working Paper: The impact of income shocks on health: evidence from cohort data (2007)
Working Paper: The Impact of Income Shocks on Health: Evidence from Cohort Data (2007)
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