The causal effect of income on health: evidence from German reunification.

@article{Frijters2005TheCE,
  title={The causal effect of income on health: evidence from German reunification.},
  author={Paul Frijters and John P. Haisken-DeNew and Michael A. Shields},
  journal={Journal of health economics},
  year={2005},
  volume={24 5},
  pages={997-1017}
}
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… CONTINUE READING
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