Health Dynamics Shape Life-Cycle Incomes

Arbeitspapier

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. 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. Compared to previous generations, life-cycle income profiles slope more strongly at the beginning and at the end of work life, such that age becomes a more prominent determinant of income dynamics. The channels for this transformation include better health, higher educational attainment, and changing labor supply.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 7953

Classification and Topics

• Classification: Wirtschaft ; Health and Economic Development ; Demographic Trends, Macroeconomic Effects, and Forecasts ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Economic Growth and Aggregate Productivity: General
• Subject: age ; mortality ; life expectancy ; productivity ; education ; labor supply

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kotschy, Rainer Franz
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/214955
• Last update: 10.03.2025, 11:42 AM CET