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Title:Wages and the Demand for Health - A Life Cycle Analysis PDF Logo
Authors:Dustmann, Christian
Windmeijer, Frank
Issue Date:2000
Series/Report no.:IZA Discussion paper series 171
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.
Subjects:Demand for health
life cycle models
panel data
JEL:D91
I12
C23
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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