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A COMPARISON BETWEEN ACTUAL DISTRIBUTIONS O F ANNUAL AND LIFETIME INCOME:
- Publisher
- Wiley
- Copyright
- © 2016 the editors of The Scandinavian Journal of Economics .
- ISSN
- 0347-0520
- eISSN
- 1467-9442
- DOI
- 10.1111/sjoe.12130
- Publisher site
- See Article on Publisher Site
Abstract
We apply a twin design to examine the relationship between health and education and income. The estimated associations between health and education and income, controlling for unobserved endowments, at the twin‐pair level, are lower than estimates obtained via ordinary least‐squares (OLS) on the same sample. Thus, OLS‐based effects of education and income are biased, exaggerating the contribution of education and income to health inequality. The main part of health inequality is explained by within‐twin‐pair fixed effects, incorporating family background and genetic inheritance. It appears that education and income policies have less to offer for reducing health inequality than is usually assumed.
Journal
The Scandinavian Journal of Economics – Wiley
Published: Jan 1, 2016
Keywords: ; ; ; ; ; ;