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Estimates of the asset-effect: The search for a causal effect of assets on adult health and employment outcomes

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  • Abigail McKnight

Abstract

In this paper we seek to determine the effect of assets held in early adult life on later outcomes. We specifically look at wages, employment prospects, general health and Malaise. The identification of an asset-effect throws up a number of statistical challenges as asset holding is not random. We employ a number of statistical techniques in our search for the causal effect of assets on adult health and employment outcomes. We find that simple Ordinary Least Squares and probit estimates of the asset effect are indeed biased in many cases. However, after applying a battery of techniques to remove such biases, the conclusion is that within the cohort examined (born in 1958), early asset holding does have positive effects on later wages, employment prospects, excellent general health and in reducing malaise.

Suggested Citation

  • Abigail McKnight, 2011. "Estimates of the asset-effect: The search for a causal effect of assets on adult health and employment outcomes," CASE Papers case149, Centre for Analysis of Social Exclusion, LSE.
    • Handle: RePEc:cep:sticas:case149
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    File URL: https://sticerd.lse.ac.uk/dps/case/cp/CASEpaper149.pdf
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    Cited by:

    1. McKnight, Abigail, 2014. "Disabled people’s financial histories: uncovering the disability wealth-penalty," LSE Research Online Documents on Economics 58041, London School of Economics and Political Science, LSE Library.
    2. repec:cep:sticas:/157 is not listed on IDEAS
    3. Francesca Bastagli & Kitty Stewart, 2011. "Pathways and penalties: Mothers’ employment trajectories and wage growth in the Families and Children Study," CASE Papers case157, Centre for Analysis of Social Exclusion, LSE.
    4. repec:cep:sticas:/181 is not listed on IDEAS
    5. Abigail McKnight, 2014. "Disabled People’s Financial Histories: Uncovering the disability wealth-penalty," CASE Papers case181, Centre for Analysis of Social Exclusion, LSE.
    6. Abigail McKnight & Mark Rucci, 2020. "The financial resilience of households: 22 country study with new estimates, breakdowns by household characteristics and a review of policy options," CASE Papers /219, Centre for Analysis of Social Exclusion, LSE.

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    Keywords

    asset effect; wealth; asset-based welfare;
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