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Health in the cities: When the neighborhood matters more than income

Marcel Bilger and Vincenzo Carrieri

Journal of Health Economics, 2013, vol. 32, issue 1, 1-11

Abstract: Using a rich Italian cross-sectional dataset, we estimate the effect of a neighborhood problems aggregate (including pollution, crime, and noise) on self-assessed health, presence of chronic conditions and limitations in daily activities. We address the self-selection of the residents in their neighborhoods, as well as the possible endogeneity of income with respect to health, through instrumental variable methods and several endogeneity tests. The main novelty is the sound estimation of the neighborhood effect on health using observational data, which has the advantage of providing general results that are not dependent on any experimental design. This allows us to fully compare the neighborhood effect with the traditional socioeconomic determinants of health. Our main findings are that low quality neighborhoods are strongly health damaging. This effect is comparable to the primary/upper secondary education health differential and is even higher than the impact that poor economic circumstances have on health.

Keywords: Neighborhood effect; Neighborhood problems aggregate; Health; Endogeneity; Instrumental variables (search for similar items in EconPapers)
JEL-codes: C31 I10 R23 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:32:y:2013:i:1:p:1-11

DOI: 10.1016/j.jhealeco.2012.09.010

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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