Income dynamics and health: A test of competing hypotheses

TitleIncome dynamics and health: A test of competing hypotheses
Publication TypeJournal Article
Year of Publication2016
AuthorsLiew, H-P
JournalHealth Policy and Technology
Date Published09/2016
KeywordsDemographics, Healthcare, Methodology, Public Policy

Objective: This study aims to examine the temporal processes underlying the relationship between income and health among the elderly to demonstrate the extent to which income histories have an influence on health changes. Methods: The empirical work of this study will be based on the 1992 2010 Health and Retirement Study (HRS). This study will test the low income hypothesis, the permanent income hypothesis, and the transitory income hypothesis using the method of growth curve modeling. Results: Results from growth curve analyses suggest that distinguishing these three income hypotheses is useful on theoretical, empirical, and policy grounds. It shows that the impact of low income, anticipated fluctuations in household income over the long run, as well as unanticipated income change over the short term on the changes in health over time are shaped along both socioeconomic and racial/ethnic lines. Conclusion: Given the present U.S. circumstances, perhaps something like a national healthcare system like the Obamacare and tax incentives and other benefit systems can be implemented to reduce the existing health disparities.

Endnote Keywords

Growth curve modeling/Socioeconomic disparities/Public Policy/income and health/health disparities

Endnote ID


Citation Key6469