Abstract #301248

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JSM 2003 Abstract #301248
Activity Number: 232
Type: Topic Contributed
Date/Time: Tuesday, August 5, 2003 : 10:30 AM to 12:20 PM
Sponsor: Section on Health Policy Statistics
Abstract - #301248
Title: Health and Wages in Britain: An Empirical Analysis
Author(s): Roberto Leon-Gonzalez*+
Companies: University of York
Address: Dept. of Economics, York, YO10 5DD, England
Keywords: health ; equity ; labor ; wages ; Bayesian ; Markov chain Monte Carlo
Abstract:

This paper develops an efficient Markov Chain Monte Carlo (MCMC) algorithm to estimate a Bayesian panel data simultaneous equation model with a dependent categorical variable and selectivity. The proposed algorithm provides evidence of convergence much more quickly than conventional MCMC algorithms, making estimation of the model possible. This model is used to analyse data on socio-economic characteristics and health. The results confirm that education and the type of occupation are important determinants of health, and that ethnic minorities that are discriminated in the labour market suffer worse health. Results suggest that higher wages come at the expense of good health. In addition, failure to recognise the mutual causal relationship between health and wages and to control for individual heterogeneity leads to underestimation of the effect of these variables on health.

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