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The Causal Effect of Income on Health: Evidence from Germany Reunification

Frijters, Paul; Haisken-DeNew, John P; Shields, Michael A


We investigate whether there was a causal effect of income changes on the health satisfaction of East and West Germans in the years following reunification. Our data source is the German Socio-Economic Panel (GSOEP) between 1984 and 2002, and we fit a recently proposed fixed-effects ordinal estimator to our health measures and use a causal decomposition technique to account for panel attrition. We find evidence of a significant positive effect of income changes on health satisfaction, but the...[Show more]

CollectionsANU Research Publications
Date published: 2005
Type: Journal article
Source: Journal of Health Economics
DOI: 10.1016/j.jhealeco.2005.01.004


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