The causal effect of income on health: Evidence from German reunification
Frijters, Paul, Haisken-DeNew, John P., & Shields, Michael A. (2005) The causal effect of income on health: Evidence from German reunification. Journal of Health Economics, 24(5), pp. 97-1017.
We investigate whether therewas a causal effect of income changes on the health satisfaction of East and West Germans in the years following reunification. Our data source is the German Socio-Economic Panel (GSOEP) between 1984 and 2002, and we fit a recently proposed fixed-effects ordinal estimator to our health measures and use a causal decomposition technique to account for panel attrition.We find evidence of a significant positive effect of income changes on health satisfaction, but the quantitative size of this effect is small. This is the case with respect to current income and a measure of ‘permanent’ income.
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|Item Type:||Journal Article|
|Keywords:||Income, Health, German reunification, Panel data, Attrition|
|Subjects:||Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Health Economics (140208)|
Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
|Divisions:||Current > QUT Faculties and Divisions > QUT Business School|
|Copyright Owner:||Copyright 2005 Elsevier.|
|Deposited On:||14 Apr 2010 12:23|
|Last Modified:||29 Feb 2012 23:19|
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