EconPapers    
Economics at your fingertips  
 

Is it vulnerability or economic insecurity that matters for health?

Nicholas Rohde (), Kam Ki Tang (), Lars Osberg () and D.S. Prasada Rao

Journal of Economic Behavior & Organization, 2017, vol. 134, issue C, 307-319

Abstract: This paper contrasts the mental and physical health impacts of vulnerability and economic insecurity. An individual is vulnerable if they are at risk of future absolute material deprivation, while they are insecure if they are threatened by losses in relative status. Using data from the first eleven waves of the Australian HILDA panel, we generate four alternative measures of real or perceived downside economic risk and employ panel data models to estimate their impacts on SF-36 mental and physical health indices. We test our hypotheses using a series of polynomial interactions which allow the effect sizes to vary non-linearly with income. Baseline estimates show that economic risks have consistently negative consequences for both mental and physical health, with the former effect being around three times the size of the latter. However our main finding is that increasing incomes do little to mitigate the sensitivity of health to these risks. This suggests it is mostly the prospect of loss rather than deprivation that impacts upon wellbeing. The finding is important as it helps distinguish between competing models (i.e. Beveridge vs Bismarck) for social insurance.

Keywords: Economic insecurity; Health; Income; Panel data; Vulnerability (search for similar items in EconPapers)
JEL-codes: D03 D69 I19 I31 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016726811630292X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Is it vulnerability or economic insecurity that matters for health? (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:134:y:2017:i:c:p:307-319

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-03
Handle: RePEc:eee:jeborg:v:134:y:2017:i:c:p:307-319