|Health dynamics shape life-cycle incomes.
|Year of Publication
|Journal of Health Economics
|Demography, Economics, Educational Status, Employment, Fertility, Health Workforce, Humans, Income, Population Dynamics, Socioeconomic factors
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. Based on data for the white population, 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. Life-cycle income profiles slope more strongly at the beginning and at the end of work life in 2000 than in 1960, indicating that age becomes a more prominent determinant of income dynamics over this period. The channels for this transformation include better health, higher educational attainment, and changing labor supply.
|U01 AG009740 / AG / NIA NIH HHS / United States