Wages and the Demand for Health - A Life Cycle Analysis

Christian Dustmann and Frank Windmeijer

No 171, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper presents a life cycle model for the demand for health, and derives empirical specifications that distinguish between permanent and transitory wage responses. Using panel data, we estimate dynamic health and health input demand equations. We find evidence of negative transitory wage effects, and positive permanent effects. Estimation results based on our life cycle framework lead to very different conclusions than those based on static cross section analyses that are common in the literature. The analysis emphasises the importance to analyse health related behaviour in a dynamic life cycle context.

Keywords: Demand for health; life cycle models; panel data (search for similar items in EconPapers)
JEL-codes: C23 D91 I12 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2000-07
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Citations: View citations in EconPapers (20)

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Working Paper: Wages and the demand for health - a life cycle analysis (2000)
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