Poor and Sick: Estimating the Relationship between Household Income and Health

Athina Economou, Ioannis Theodossiou

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)


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 utilized 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 as well as a host of other factors 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
Pages (from-to)395-411
Number of pages18
JournalReview of Income and Wealth
Issue number3
Early online date28 Feb 2011
Publication statusPublished - Sept 2011


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