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The Effect of Income on Mortality – New Evidence for the Absence of a Causal Link

Alexander Ahammer (), Gerard Horvath () and Rudolf Winter-Ebmer ()

No 2015-04, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: We analyze the effect of income on mortality in Austria using administrative social security data. To tackle potential endogeneity concerns arising in this context, we estimate time-invariant firm-specific wage components and use them as instruments for actual wages. While we do find quantitatively small yet statistically significant effects in our naïve least squares estimations, IV regressions reveal a robust zero-effect of income on ten-year death rates for prime-age workers, both in terms of coefficient magnitude and statistical significance. These results are robust to a number of different sample specifications and both linear and non-linear estimation methods.

Keywords: Income; mortality; wage decomposition. (search for similar items in EconPapers)
JEL-codes: J14 J31 I10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea and nep-lma
Date: 2015-07
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Related works:
Journal Article: The effect of income on mortality—new evidence for the absence of a causal link (2017) Downloads
Working Paper: The Effect of Income on Mortality - New Evidence for the Absence of a Causal Link (2015) Downloads
Working Paper: The Effect of Income on Mortality: New Evidence for the Absence of a Causal Link (2015) Downloads
Working Paper: The Effect of Income on Mortality – New Evidence for the Absence of a Causal Link (2015) Downloads
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