IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v38y2009i6p977-987.html
   My bibliography  Save this article

Controlling for endogeneity in the health-socioeconomic status relationship of the near retired

Author

Listed:
  • Bender, Keith A.
  • Theodossiou, Ioannis

Abstract

Although there is a strong correlation between health and socioeconomic status (SES), the direction of causation is not empirically clear. This study a uses a two stage methodology to control for endogeneity. Using data from the U.S. Health and Retirement Study, the results show that after controlling for endogeneity, labor force status turns out to be an even more important factor in determining health than in the case where endogeneity is not controlled for. In particular, unemployment generates much higher odds for worse health as measured by both subjective and objective health measures.

Suggested Citation

  • Bender, Keith A. & Theodossiou, Ioannis, 2009. "Controlling for endogeneity in the health-socioeconomic status relationship of the near retired," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 977-987, December.
    • Handle: RePEc:eee:soceco:v:38:y:2009:i:6:p:977-987
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/B6W5H-4WY13YD-2/2/75695184a520efa8da27c2bfa617d216
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Keith A. Bender & Steffen Habermalz, 2008. "Are There Differences in the Health– Socio‐economic Status Relationship over the Life Cycle? Evidence from Germany," LABOUR, CEIS, vol. 22(1), pages 107-125, March.
    2. Daniel S. Hamermesh, 2001. "The Changing Distribution of Job Satisfaction," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 1-30.
    3. Morrell, S. & Taylor, R. & Quine, S. & Kerr, C. & Western, J., 1994. "A cohort study of unemployment as a cause of psychological disturbance in Australian youth," Social Science & Medicine, Elsevier, vol. 38(11), pages 1553-1564, June.
    4. M. Hurd & A. Kapteyn, 2005. "Health, Wealth, and the Role of Institutions," Springer Books, in: Peter Gijsel & Hans Schenk (ed.), Multidisciplinary Economics, pages 307-332, Springer.
    5. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
    6. Martelin, Tuija, 1994. "Mortality by indicators of socioeconomic status among the finnish elderly," Social Science & Medicine, Elsevier, vol. 38(9), pages 1257-1278, May.
    7. Wilkinson, Richard G & Pickett, Kate E., 2006. "Income inequality and population health: A review and explanation of the evidence," Social Science & Medicine, Elsevier, vol. 62(7), pages 1768-1784, April.
    8. Michael Hurd & Arie Kapteyn, 2003. "Health, Wealth, and the Role of Institutions," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
    9. James Smith & Raynard Kington, 1997. "Demographic and economic correlates of health in old age," Demography, Springer;Population Association of America (PAA), vol. 34(1), pages 159-170, February.
    10. Andersson, Pernilla, 2008. "Happiness and health: Well-being among the self-employed," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 213-236, February.
    11. Deborah Ashby & Stuart J. Pocock & A. Gerald Shaper, 1986. "Ordered Polytomous Regression: An Example Relating Serum Biochemistry and Haematology to Alcohol Consumption," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 35(3), pages 289-301, November.
    12. Ecob, Russell & Davey Smith, George, 1999. "Income and health: what is the nature of the relationship?," Social Science & Medicine, Elsevier, vol. 48(5), pages 693-705, March.
    13. Hammarström, Anne, 1994. "Health consequences of youth unemployment--review from a gender perspective," Social Science & Medicine, Elsevier, vol. 38(5), pages 699-709, March.
    14. Gerlach, Knut & Stephan, Gesine, 1996. "A paper on unhappiness and unemployment in Germany," Economics Letters, Elsevier, vol. 52(3), pages 325-330, September.
    15. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 617-650.
    16. Grundy, Emily & Holt, Gemma, 2000. "Adult life experiences and health in early old age in Great Britain," Social Science & Medicine, Elsevier, vol. 51(7), pages 1061-1074, October.
    17. Theodossiou, I., 1998. "The effects of low-pay and unemployment on psychological well-being: A logistic regression approach," Journal of Health Economics, Elsevier, vol. 17(1), pages 85-104, January.
    18. Anders Bj�rklund, 1985. "Unemployment and Mental Health: Some Evidence from Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 469-483.
    19. Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004. "Healthy, Wealthy, and Wise? Tests for Direct Causal Paths between Health and Socioeconomic Status," NBER Chapters, in: Perspectives on the Economics of Aging, pages 415-526, National Bureau of Economic Research, Inc.
    20. Chapman, Kenneth S & Hariharan, Govind, 1994. "Controlling for Causality in the Link from Income to Mortality," Journal of Risk and Uncertainty, Springer, vol. 8(1), pages 85-93, January.
    21. Rahkonen, Ossi & Lahelma, Eero & Huuhka, Minna, 1997. "Past or present? Childhood living conditions and current socioeconomic status as determinants of adult health," Social Science & Medicine, Elsevier, vol. 44(3), pages 327-336, February.
    22. James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring.
    23. van Doorslaer, Eddy & Wagstaff, Adam & Bleichrodt, Han & Calonge, Samuel & Gerdtham, Ulf-G. & Gerfin, Michael & Geurts, Jose & Gross, Lorna & Hakkinen, Unto & Leu, Robert E., 1997. "Income-related inequalities in health: some international comparisons," Journal of Health Economics, Elsevier, vol. 16(1), pages 93-112, February.
    24. Liliana Winkelmann & Rainer Winkelmann, 1998. "Why Are the Unemployed So Unhappy?Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maite Blázquez & Elena Cottini & Ainhoa Herrarte, 2014. "The socioeconomic gradient in health: how important is material deprivation?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 239-264, June.
    2. Dimitris Zavras, 2020. "Studying Healthcare Affordability during an Economic Recession: The Case of Greece," IJERPH, MDPI, vol. 17(21), pages 1-21, October.
    3. Elena Bárcena-Martín & Maite Blázquez & Ana I. Moro Egido, 2017. "Intra-household allocation of resources and decision-making. How important are in terms of individual well-being?," ThE Papers 17/03, Department of Economic Theory and Economic History of the University of Granada..
    4. Bárcena, Elena & Blázquez, Maite & Moro-Egido, Ana I., 2016. "The socioeconomic gradient in health: The role of intra-household resource allocation," Working Papers in Economic Theory 2016/06, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    5. Joelle Saad-Lessler & Teresa Ghilarducci, 2013. "New Policies for an Older Unemployed Population," SCEPA working paper series. 2013-3, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    6. Nicholas Biddle & Maria Jahromi, 2023. "Gender Differences in the Relationship Between Labour Market Outcomes and Well‐being," The Economic Record, The Economic Society of Australia, vol. 99(325), pages 207-237, June.
    7. Paul Frijters & David W. Johnston & Michael A. Shields, 2014. "The Effect Of Mental Health On Employment: Evidence From Australian Panel Data," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1058-1071, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Athina Economou & Ioannis Theodossiou, 2011. "Poor And Sick: Estimating The Relationship Between Household Income And Health," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 395-411, September.
    2. Keith A. Bender & Steffen Habermalz, 2008. "Are There Differences in the Health– Socio‐economic Status Relationship over the Life Cycle? Evidence from Germany," LABOUR, CEIS, vol. 22(1), pages 107-125, March.
    3. Cooper, D. & McCausland, W.D. & Theodossiou, I., 2006. "The health hazards of unemployment and poor education: The socioeconomic determinants of health duration in the European Union," Economics & Human Biology, Elsevier, vol. 4(3), pages 273-297, December.
    4. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    5. D. Cooper & W. D. McCausland & I. Theodossiou, 2008. "Unemployed, uneducated and sick: the effects of socio‐economic status on health duration in the European Union," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(4), pages 939-952, October.
    6. Gerdtham, Ulf-G. & Johannesson, Magnus, 2003. "A note on the effect of unemployment on mortality," Journal of Health Economics, Elsevier, vol. 22(3), pages 505-518, May.
    7. Frijters, Paul & Ulker, Aydogan, 2008. "Robustness in health research: Do differences in health measures, techniques, and time frame matter?," Journal of Health Economics, Elsevier, vol. 27(6), pages 1626-1644, December.
    8. Jones, Andrew M. & Wildman, John, 2008. "Health, income and relative deprivation: Evidence from the BHPS," Journal of Health Economics, Elsevier, vol. 27(2), pages 308-324, March.
    9. Theodossiou, I. & Zangelidis, A., 2009. "The social gradient in health: The effect of absolute income and subjective social status assessment on the individual's health in Europe," Economics & Human Biology, Elsevier, vol. 7(2), pages 229-237, July.
    10. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Money Does Matter! Evidence from Increasing Real Income and Life Satisfaction in East Germany Following Reunification," American Economic Review, American Economic Association, vol. 94(3), pages 730-740, June.
    11. Kuhn, Andreas & Lalive, Rafael & Zweimüller, Josef, 2009. "The public health costs of job loss," Journal of Health Economics, Elsevier, vol. 28(6), pages 1099-1115, December.
    12. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    13. Hai Fang & John A. Rizzo, 2012. "Does inequality in China affect health differently in high- versus low-income households?," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1081-1090, March.
    14. Paul Frijters & John P. Haisken-DeNew & Michale A. Shields, 2001. "The Value of Reunification in Germany: An Analysis of Changes in Life Satisfaction," Department of Economics - Working Papers Series 828, The University of Melbourne.
    15. Rosa Duarte & José-Julián Escario & José-Alberto Molina, 2007. "Supporting the Endogenous Relationship Between Well-Being and Employment for US Individuals," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(3), pages 279-288, September.
    16. Blanchflower, David G. & Oswald, Andrew J., 2008. "Is well-being U-shaped over the life cycle?," Social Science & Medicine, Elsevier, vol. 66(8), pages 1733-1749, April.
    17. Maite Blázquez & Elena Cottini & Ainhoa Herrarte, 2014. "The socioeconomic gradient in health: how important is material deprivation?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 239-264, June.
    18. Clemens Hetschko, 2016. "On the misery of losing self-employment," Small Business Economics, Springer, vol. 47(2), pages 461-478, August.
    19. Hernández-Quevedo, Cristina & Jones, Andrew M. & Rice, Nigel, 2008. "Persistence in health limitations: A European comparative analysis," Journal of Health Economics, Elsevier, vol. 27(6), pages 1472-1488, December.
    20. Maite Blázquez Cuesta & Elena Cottini & Herrarte, A. (Ainhoa), 2012. "GINI DP 39: Socioeconomic Gradient in Health: How Important is Material Deprivation?," GINI Discussion Papers 39, AIAS, Amsterdam Institute for Advanced Labour Studies.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:38:y:2009:i:6:p:977-987. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.