The earnings effects of health and health-related activities: a panel data approach

Yuxi Xiao, Haizheng Li and Belton Fleisher ()

Applied Economics, 2015, vol. 47, issue 14, 1407-1423

Abstract: We investigate the effects of health and health-related habits on earnings in China using panel data to control for unobserved heterogeneity related to individual traits and job characteristics. Health-related habits include smoking cigarettes, drinking tea, frequency of drinking alcohol and physical exercising. We find a significant and large impact of health status on earnings, controlling for schooling, experience and the unobserved individual heterogeneity and job heterogeneity. We also find that smoking has a strong negative effect on earnings net of health status, while the estimated effects of other health-related activities are statistically insignificant.

Date: 2015
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DOI: 10.1080/00036846.2014.1000521

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