DP10728 The Effect of Income on Mortality - New Evidence for the Absence of a Causal Link
|Author(s):||Alexander Ahammer, Gerard Thomas Horvath, Rudolf Winter-Ebmer|
|Publication Date:||July 2015|
|Keyword(s):||income, mortality, wage decomposition|
|JEL(s):||I10, J14, J31|
|Programme Areas:||Labour Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=10728|
We analyze the effect of income on mortality in Austria using administrative social security data. To tackle potential endogeneity concerns arising in this context, we estimate time-invariant firm-specific wage components and use them as instruments for actual wages. While we do find quantitatively small yet statistically significant effects in our naïve least squares estimations, IV regressions reveal a robust zero-effect of income on ten-year death rates for prime-age workers, both in terms of coecient magnitude and statistical significance. These results are robust to a number of different sample specifications and both linear and non-linear estimation methods.