Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income
A vast literature has established a strong positive relation between income and health status and a negative relation with mortality. This paper studies the effects of income on health and mortality, using only the part of income variation due to a truly exogenous factor: monetary lottery prizes of individuals. The findings are that higher income causally generates good health and that this effect is of a similar magnitude as when traditional estimation techniques are used. A 10 percent income increase improves health by about 4–5 percent of a standard deviation.
Year of publication: |
2005
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Authors: | Lindahl, Mikael |
Published in: |
Journal of Human Resources. - University of Wisconsin Press. - Vol. 40.2005, 1
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Publisher: |
University of Wisconsin Press |
Saved in:
Online Resource
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