Working Paper: NBER ID: w10063
Authors: James P. Smith
Abstract: Smith uses the HRS and AHEAD panels to examine the consequences of new health on a series of SES related outcomes- out-of-pocket labor supply, labor force activity, household income and wealth. For each of these outcomes, new severe health events have a significant effect although most of the impact on income and wealth takes place through labor supply and not not medical expenses. The paper also examines the ability of different measures of SES to predict the future onset of disease. The author finds no predictive effect of income or wealth but education does predict future onset even after controlling for current health status. The reasons for this continuing predictive effect of education are explored in the paper.
Keywords: No keywords provided
JEL Codes: I0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| New severe health events (I12) | labor supply (J20) |
| New severe health events (I12) | household income (D19) |
| New severe health events (I12) | wealth (D14) |
| New severe health events (I12) | medical expenses (H51) |
| Education (I29) | future health onset (I12) |
| Household income (D19) | future onset of disease (I12) |
| Wealth (D31) | future onset of disease (I12) |
| Onset of new chronic conditions (I12) | additional health issues (I12) |
| Health shocks (I12) | out-of-pocket medical expenses (H51) |
| SES dimensions (income, wealth, education) (I24) | health outcomes (I14) |