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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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  • McKnight, Abigail

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

  • McKnight, Abigail, 2011. "Estimates of the asset-effect: the search for a causal effect of assets on adult health and employment outcomes," LSE Research Online Documents on Economics 43896, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:43896
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    References listed on IDEAS

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    More about this item

    Keywords

    asset effect; wealth; asset-based welfare;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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