Full Citation

Title: Health Dynamics Shape Life-Cycle Incomes

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN:

DOI: 10.1016/j.jhealeco.2020.102398

NSFID:

PMCID:

PMID:

Abstract: This paper empirically investigates the long-run effects of major health improvements on income growth in the United States. To isolate exogenous changes in health, the econometric model uses quasi-experimental variation in cardiovascular disease mortality across states over time. Based on data for the white population, the results show that there is a causal link between health and income per person, and they provide novel evidence that health dynamics shape life-cycle incomes. Life-cycle income profiles slope more strongly at the beginning and at the end of work life in 2000 than in 1960, indicating that age becomes a more prominent determinant of income dynamics over this period. The channels for this transformation include better health, higher educational attainment, and changing labor supply.

Url: https://doi.org/10.1016/j.jhealeco.2020.102398

User Submitted?: Yes

Authors: Kotschy, Rainer

Periodical (Full): Journal of Health Economics

Issue:

Volume: 75

Pages: 102398

Data Collections: IPUMS USA

Topics: Aging and Retirement, Education, Health, Labor Force and Occupational Structure

Countries: