Health dynamics shape life-cycle incomes.

TitleHealth dynamics shape life-cycle incomes.
Publication TypeJournal Article
Year of Publication2021
AuthorsKotschy, R
JournalJournal of Health Economics
ISSN Number1879-1646
KeywordsDemography, 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.

Citation Key12085
PubMed ID33285340
Grant ListU01 AG009740 / AG / NIA NIH HHS / United States