Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income

Mikael Lindahl

Journal of Human Resources, 2005, vol. 40, issue 1

Abstract: A vast literature has established a strong positive relation between income and health status and a negative relation with mortality. This paper studies the effects of income on health and mortality, using only the part of income variation due to a truly exogenous factor: monetary lottery prizes of individuals. The findings are that higher income causally generates good health and that this effect is of a similar magnitude as when traditional estimation techniques are used. A 10 percent income increase improves health by about 4–5 percent of a standard deviation.

Date: 2005
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Working Paper: Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as Exogenous of Variation in Income (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:40:y:2005:i:1:p144-168

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