Health dynamics shape life-cycle incomes.

TitleHealth dynamics shape life-cycle incomes.
Publication TypeJournal Article
Year of Publication2021
AuthorsKotschy, R
JournalJournal of Health Economics
Volume75
Pagination102398
ISSN Number1879-1646
KeywordsDemography, Economics, Educational Status, Employment, Fertility, Health Workforce, Humans, Income, Population Dynamics, Socioeconomic factors
Abstract

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.

DOI10.1016/j.jhealeco.2020.102398
Citation Key12085
PubMed ID33285340
Grant ListU01 AG009740 / AG / NIA NIH HHS / United States