The absolute health income hypothesis revisited: A Semiparametric Quantile Regression Approach.

Abstract

This paper uses the 1998-99 Canadian National Population Health Survey (NPHS) data to examine the health-income relationship that underlies the absolute income hypothesis. To allow for nonlinearity and data heterogeneity, we use a partially linear semiparametric quantile regression model. The “absolute income hypothesis” is partially true; the negative aging effects appear more pronounced for the illhealthy population than for the healthy population and when annual income is below 40,000 Canadian dollars.Absolute income hypothesis · Partially linear quantile