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Discoveries in the Economics of Aging$
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David A. Wise

Print publication date: 2014

Print ISBN-13: 9780226146096

Published to Chicago Scholarship Online: January 2015

DOI: 10.7208/chicago/9780226146126.001.0001

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Understanding the SES Gradient in Health among the Elderly

Understanding the SES Gradient in Health among the Elderly

The Role of Childhood Circumstances

Chapter:
5 Understanding the SES Gradient in Health among the Elderly
Source:
Discoveries in the Economics of Aging
Author(s):

Till Stowasser

Florian Heiss

Daniel McFadden

Joachim Winter

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226146126.003.0006

Individuals’ socioeconomic status (SES) is positively correlated with their health status. While the existence of this gradient may be uncontroversial, the same cannot be said about its explanation. In this paper, we extend the approach of testing for the absence of causal channels developed by Adams et al. (2003), which in a Granger causality sense promises insights on the causal structure of the health-SES nexus. We introduce some methodological refinements and integrate retrospective survey data on early childhood circumstances into this framework. We confirm that childhood health has lasting predictive power for adult health. We also uncover strong gender differences in the intertemporal transmission of SES and health: While the link between SES and functional as well as mental health among men appears to be established rather late in life, the gradient among women seems to originate from childhood circumstances.

Keywords:   socioeconomic status, health status, absence of casual channels, Granger causality sense, early childhood, gender differences, SES

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