WHAT ROLES DO CONTEMPORANEOUS AND CUMULATIVE INCOMES PLAY IN THE INCOME–CHILD HEALTH GRADIENT FOR YOUNG CHILDREN? EVIDENCE FROM AN AUSTRALIAN PANEL
Article first published online: 19 JUN 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Volume 23, Issue 8, pages 879–893, August 2014
How to Cite
2014), WHAT ROLES DO CONTEMPORANEOUS AND CUMULATIVE INCOMES PLAY IN THE INCOME–CHILD HEALTH GRADIENT FOR YOUNG CHILDREN? EVIDENCE FROM AN AUSTRALIAN PANEL, Health Economics, 23, pages 879–893, doi: 10.1002/hec.2961, and (
- Issue published online: 3 JUL 2014
- Article first published online: 19 JUN 2013
- Manuscript Accepted: 21 MAY 2013
- Manuscript Revised: 13 MAY 2013
- Manuscript Received: 23 JUL 2012
- child health;
- income gradient;
- chronic conditions;
- panel data;
The literature to date shows that children from poorer households tend to have worse health than their peers, and the gap between them grows with age. We investigate whether and how health shocks (as measured by the onset of chronic conditions) contribute to the income–child health gradient and whether the contemporaneous or cumulative effects of income play important mitigating roles. We exploit a rich panel dataset with three panel waves called the Longitudinal Study of Australian children. Given the availability of three waves of data, we are able to apply a range of econometric techniques (e.g. fixed and random effects) to control for unobserved heterogeneity. The paper makes several contributions to the extant literature. First, it shows that an apparent income gradient becomes relatively attenuated in our dataset when the cumulative and contemporaneous effects of household income are distinguished econometrically. Second, it demonstrates that the income–child health gradient becomes statistically insignificant when controlling for parental health and health-related behaviours or unobserved heterogeneity. Copyright © 2013 John Wiley & Sons, Ltd.