Health Economics Seminars (EUR)

Speaker(s)
Carina Furnée (University of Maastricht)
Date
2009-09-01
Location
Rotterdam

This study examines the relationship between income and health at the individual level. Self-reported poor health (SRPH) is used as an indicator of idiosyncratic vulnerability. We test the following hypotheses: (1) if earnings differentials affect perceived health at the individual level then rates of SRPH must differ between members of different income groups; (2) if earnings differentials modify differential vulnerability at the individual level then the effect of income on perceived poor health differs per country. The data consists of relative effect sizes of income on selfreported health in different countries obtained from the literature. We find that this relationship between income and perceived health is best described by a log-linear model. We find proof of cross-country differences in specific variations in the perception of health relative to the distribution of earnings. A strongest relationship income elasticity of vulnerability is found for the USA, Latvia, and Canada and a weaker elasticity – though still significant – is found for Japan, Bulgaria and Russia. So far, a study on the country specific relationship between income and health vulnerability at the individual level is not available in the literature. A better understanding of this idiosyncratic relationship may contribute to improved welfare policy design aimed at ensuring equal health for all. (joint work with G. Pfann)