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Title:The impact of income shocks on health: evidence from cohort data PDF Logo
Authors:Adda, Jérôme
Banks, James
von Gaudecker, Hans-Martin
Issue Date:2008
Series/Report no.:IZA Discussion Papers 3329
Abstract:We study the effect of permanent income innovations on health for a prime-aged population. Using information on more than half a million individuals sampled over a twenty-five year period in three different cross-sectional surveys we aggregate data by date-of-birth cohort to construct a 'synthetic cohort' dataset with details of income, expenditure, socio-demographic factors, health outcomes and selected risk factors. We then exploit structural and arguably exogenous changes in cohort incomes over the eighties and nineties to uncover causal effects of permanent income shocks on health. We find that such income innovations have little effects on a wide range of health measures, but do lead to increases in mortality and risky health behaviour.
Subjects:Income shocks
health
JEL:I1
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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