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The impact of income shocks on health: evidence from cohort data

Adda, J.; Banks, J.; von Gaudecker, H.-M.; (2008) The impact of income shocks on health: evidence from cohort data. (IZA Discussion Papers 3329). Institut zur Zukunft der Arbeit (IZA): Bonn, Germany. Green open access

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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.

Type: Working / discussion paper
Title: The impact of income shocks on health: evidence from cohort data
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.iza.org/en/webcontent/publications/pape...
Language: English
Keywords: JEL classification: I1, J3. Income shocks, health
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of SandHS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/15304
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