Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/214955 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7953
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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. 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. Compared to previous generations, life-cycle income profiles slope more strongly at the beginning and at the end of work life, such that age becomes a more prominent determinant of income dynamics. The channels for this transformation include better health, higher educational attainment, and changing labor supply.
Subjects: 
age
mortality
life expectancy
productivity
education
labor supply
JEL: 
I15
J11
J24
J31
O40
Document Type: 
Working Paper
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