Health dynamics shape life-cycle incomes
Journal of Health Economics, 2021, vol. 75, issue C
This paper empirically investigates the long-run effects of major health improvements on income growth in the United States. To isolate exogenous changes in health, the econometric model uses quasi-experimental variation in cardiovascular disease mortality across states over time. Based on data for the white population, the results show that there is a causal link between health and income per person, and they provide novel evidence that health dynamics shape life-cycle incomes. Life-cycle income profiles slope more strongly at the beginning and at the end of work life in 2000 than in 1960, indicating that age becomes a more prominent determinant of income dynamics over this period. The channels for this transformation include better health, higher educational attainment, and changing labor supply.
Keywords: Age; Mortality; Life expectancy; Productivity; Education; Labor supply (search for similar items in EconPapers)
JEL-codes: I15 J11 J24 J31 O40 (search for similar items in EconPapers)
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Working Paper: Health Dynamics Shape Life-Cycle Incomes (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:75:y:2021:i:c:s0167629620310444
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