Location of Repository

Health and wages: Panel evidence on men and women using IV Quantile Regression

By Abbi Mamo Kedir

Abstract

Using panel data from a developing country on individuals aged 16 to 59 who reported their monthly wages, we estimated a relationship between health (nutrition) measures (i.e. height and BMI) and wages (which proxies productivity/growth). We controlled for endogeneity of BMI and found heterogeneous returns to different human capital indicators. Our findings indicate that productivity is positively and significantly affected by education, height and BMI. The return to BMI is important both at the lower and upper end of the wage distribution for men while women at the upper end of the distribution suffer a wage penalty due to BMI. Height has been a significant factor affecting men’s productivity but not women. The results in general support the high-nutrition and high-productivity equilibrium story. Returns to schooling showed a declining trend as we move from lower to higher quantiles for both sub-samples. This might suggest that schooling is more beneficial for the less able. In addition, the returns to schooling of women are higher than men. The results have important implications for policy making in the form of nutrition interventions and targeted education on women

Topics: height, BMI, schooling, heterogeneity, endogeneity, quantile, IV
Publisher: Dept. of Economics, University of Leicester
Year: 2008
OAI identifier: oai:lra.le.ac.uk:2381/7579

Suggested articles

Preview

Citations

  1. (1992). A model of growth through creative destruction, doi
  2. (1988). A model of Nutrition, doi
  3. (1976). A pure theory of underdeveloped economies‟, doi
  4. (1993). An Inquiry into Well-Being and Destitution‟, doi
  5. (1997). Assessing the Productive Benefits of Nutrition and Health: An Integrated Human Capital Approach‟, doi
  6. (1986). Does better nutrition raise farm productivity?‟, doi
  7. (2000). Does Schooling Cause Growth? doi
  8. (1957). Economic Backwardness and Economic Growth‟, doi
  9. (1979). Education and Self-selection‟, doi
  10. (2008). forthcoming) Stature and Status: Height, Ability and Labour Market Outcomes, doi
  11. (1997). Health and Labour Productivity: Economic impact of Onchocercal Skin Disease‟, Policy Research Working Paper 1836, World Bank, doi
  12. (1997). Health and Wages: Evidence on men and women in urban Brazil, doi
  13. (2003). Health, Inequality and Economic Development‟, doi
  14. (1998). Health, Nutrition and Economic Development‟,
  15. (2002). Health, Nutrition and Prosperity: a microeconomic perspective,
  16. (2005). Heterogeneity in returns to schooling: Econometric evidence from Ethiopia‟, doi
  17. (1964). Human Capital‟, doi
  18. (2001). Individual Heterogeneity in the Returns to Schooling: Instrumental Variables Quantile Regression using doi
  19. (2006). Is Weight Linked to a Wage Premium in a Developing country? Evidence from Quantile Regressions‟, mimeo,
  20. (1988). Nutrition and Labour Productivity in Agriculture‟,
  21. (1997). Nutritional Status, the Capacity for Work and Poverty Traps‟, doi
  22. (1972). On the Concept of Health Capital and the Demand for Health‟, doi
  23. (1995). Physical Attractiveness and Intellectual Competence: a meta-analytic review, doi
  24. (1978). Productivity, Wages, Nutrition: Some Observations‟, doi
  25. (2007). Quadratic Engel Curves and measurement error: evidence from Ethiopia‟, doi
  26. Recent Advances in Quantile Regression Models‟,
  27. (1986). The Determination of life cycle earnings: a survey‟, doi
  28. (1976). The Efficiency Wage Hypothesis, Surplus Labour and the Distribution of Income in LDCs‟,
  29. (1999). The Evolution of Thinking About Poverty: Exploring the Interactions‟, United Nations.
  30. (2004). The Impact of Obesity on Wages, doi
  31. (2003). The Nutrition-Productivity Link and the Persistence of Poverty‟, Discussion paper,
  32. (1994). The role of human capital in economic development: evidence from aggregate cross-country data, doi
  33. (1996). The Role of Nutrition in the Development of Normal Cognition,
  34. (2004). The wage effects of obesity: a longitudinal study, doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.