The causal effect of income on health : Evidence from German reunification

Frijters, Paul, Haisken-DeNew, John P. and Shields, Michael A. (2005) The causal effect of income on health : Evidence from German reunification. Journal of Health Economics, 24 5: 997-1017. doi:10.1016/j.jhealeco.2005.01.004

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Author Frijters, Paul
Haisken-DeNew, John P.
Shields, Michael A.
Title The causal effect of income on health : Evidence from German reunification
Journal name Journal of Health Economics   Check publisher's open access policy
ISSN 0167-6296
1879-1646
Publication date 2005-01-01
Sub-type Article (original research)
DOI 10.1016/j.jhealeco.2005.01.004
Volume 24
Issue 5
Start page 997
End page 1017
Total pages 21
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Language eng
Formatted abstract
We investigate whether there was a causal effect of income changes on the health satisfaction of East and West Germans in the years following reunification. Our data source is the German Socio-Economic Panel (GSOEP) between 1984 and 2002, and we fit a recently proposed fixed-effects ordinal estimator to our health measures and use a causal decomposition technique to account for panel attrition. We find evidence of a significant positive effect of income changes on health satisfaction, but the quantitative size of this effect is small. This is the case with respect to current income and a measure of ‘permanent’ income.
Keyword Income
Health
German reunification
Panel data
Attrition
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collections: ERA 2012 Admin Only
School of Economics Publications
 
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Created: Tue, 27 Sep 2011, 19:10:16 EST by Alys Hohnen on behalf of School of Economics