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wp0705.pdf
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<p><p>We study the effect of permanent income innovations on health for a prime-aged population. Using information on more than half a million individuals sampled over a twenty-five year period in three different cross-sectional surveys we aggregate data by date-of-birth cohort to construct a 'synthetic cohort' dataset with details of income, expenditure, socio-demographic factors, health outcomes and selected risk factors. We then exploit structural and arguably exogenous changes in cohort incomes over the eighties and nineties to uncover causal effects of permanent income shocks on health. We find that such income innovations have little effects on health, but do affect health behaviour and mortality.</p></p>
Authors
![James Banks](/sites/default/files/styles/square_desktop/public/2022-06/James_Banks.jpg?itok=EvmV7fKj)
CPP Co-Director
James is Senior Research Fellow and Professor of Economics at Manchester, working on broad issues in the economics of retirement, savings and health.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Jerome Adda
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Hans-Martin von Gaudecker
Working Paper details
- DOI
- 10.1920/wp.ifs.2007.0705
- Publisher
- IFS
Suggested citation
J, Adda and J, Banks and H, von Gaudecker. (2007). The impact of income shocks on health: evidence from cohort data. London: IFS. Available at: https://ifs.org.uk/publications/impact-income-shocks-health-evidence-cohort-data (accessed: 3 July 2024).
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