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

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 estimato...

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Veröffentlicht in:Journal of Health Economics 2005-09, Vol.24 (5), p.997-1017
Hauptverfasser: Frijters, Paul, Haisken-DeNew, John P., Shields, Michael A.
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container_title Journal of Health Economics
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creator Frijters, Paul
Haisken-DeNew, John P.
Shields, Michael A.
description 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.
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source Applied Social Sciences Index & Abstracts (ASSIA); MEDLINE; RePEc; ScienceDirect Journals (5 years ago - present)
subjects Adult
Attrition
Consumer Behavior - statistics & numerical data
Customer satisfaction
Economic theory
Empirical tests
Female
German people
German reunification
Germany
Health
Health administration
Health care
Health economics
Health policy
Health Status
Humans
Income
Income inequality
Income redistribution
Male
Middle Aged
Models, Econometric
Panel data
Reunification
Social Class
Studies
title The causal effect of income on health: Evidence from German reunification
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