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Title: Poor and Sick : Estimating the relationship between Household Income and Health
Authors: Economou, Athina
Theodossiou, Ioannis
Keywords: Latent health
Household income
Socioeconomic status
Endogeneity
Issue Date: Feb-2010
Publisher: University of Aberdeen
Citation: Economou, A., and Theodossiou, I., (2010) Poor and Sick : Estimating the relationship between Household Income and Health. Discussion Paper 2010-04.
Series/Report no.: University of Aberdeen Business School Working Paper Series
2010-04
Abstract: This study evaluates the effect of the individual‘s household income on their health at the later stages of working life. A structural equation model is utilised in order to derive a composite and continuous index of the latent health status from qualitative health status indicators. The endogenous relationship between health status and household income status is taken into account by using IV estimators. The findings reveal a significant effect of individual household income on health before and after endogeneity is taken into account and after a host of other factors which is known to influence health, including hereditary factors and the individual‘s locus of control. Importantly, it is also shown that the childhood socioeconomic position of the individual has long lasting effects on health as it appears to play a significant role in determining health during the later stages of working life.
URI: http://hdl.handle.net/2164/312
ISSN: 0143-4543
Appears in Collections:Economics research
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