Poor and sick: estimating the relationship between household income and health

Athina Economou, Ioannis Theodossiou

Research output: Working paperDiscussion paper


This study evaluates the effect of the individual‘s household income on their health at the later stages of working life. A structural equation model is utilised in order to derive a composite and continuous index of the latent health status from qualitative health status indicators. The endogenous relationship between health status and household income status is taken into account by using IV estimators. The findings reveal a significant effect of individual household income on health before and after endogeneity is taken into account and after a host of other factors which is known to influence health, including hereditary factors and the individual‘s locus of control. Importantly, it is also shown that the childhood socioeconomic position of the individual has long lasting effects on health as it appears to play a significant role in determining health during the later stages of working life.
Original languageEnglish
PublisherCentre for European Labour Market Research
Number of pages31
Publication statusPublished - Feb 2010

Publication series

NameUniversity of Aberdeen Business School Working Paper Series
ISSN (Print)0143-4543


  • latent health
  • household income
  • socioeconomic status
  • endogeneity


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