Using a dynamic panel approach, we provide empirical evidence that negative health shocks reduce earnings. The effect …. Calibrating the model to the United States, we find that health inequality is an important source of lifetime earnings inequality …, individuals whose health is risky and heterogeneous choose to either work, or not work and apply for social security disability …

Using a dynamic panel approach, we provide empirical evidence that negative health shocks reduce earnings. The effect …. Calibrating the model to the United States, we find that health inequality is an important source of lifetime earnings inequality …, individuals whose health is risky and heterogeneous choose to either work, or not work and apply for social security disability …

pecuniary costs is the loss in labor earnings. Because bad health lowers ones' life expectancy, its non-pecuniary effects are …What are the cumulative effects of health shocks over the life-cycle? The answer depends on the nature of persistence … of bad health and the extent to which it changes individuals' economic circumstances. We measure the lifetime costs of …

economy? Our tool is a general equilibrium model with heterogeneous agents calibrated using the Medical Expenditure Panel …

observable. This paper studies ways to improve upon existing public health insurance policies by using a framework where both the … implemented by introducing an option to substitute public health insurance with cash transfers …

moments of the data over the life cycle. The key challenge for the model is to generate declining inequality in annual hours …-sectional inequality in labor supply and consumption, and may have quantitative relevance for analyses that exploit the intratemporal first …