The income-health gradient: evidence from self-reported health and biomarkers using longitudinal data on income
Apostolos Davillas (),
Andrew Jones () and
No 2017-03, ISER Working Paper Series from Institute for Social and Economic Research
Â This paper adds to the literature on the income-health gradient by exploring the association of short- and long-term income with a wide set of self-reported health measures and objective nurse-administered and blood-based biomarkers as well as employing estimation techniques that allow for analysis â€œbeyond the meanâ€ and accounting for unobserved heterogeneity. The income-health gradients are greater in magnitude in case of long-run rather than cross- sectional income measures. Unconditional quantile regressions reveal that the differences between the long-run and the short-run income gradients are more evident towards the right tails of the distributions, where both higher risk of illnesses and steeper income gradients are observed. A two-step estimator, involving a fixed-effects income model at the first stage, shows that the individual-specific selection effects have a systematic impact in the long-run income gradients in self-reported health but not in biomarkers, highlighting the importance of reporting error in self-reported health.
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Working Paper: The income-health gradient: Evidence from self-reported health and biomarkers using longitudinal data on income (2017)
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