TY  - JOUR
AU  - Gan,Li
AU  - Gong,Guan
TI  - Estimating Interdependence Between Health and Education in a Dynamic Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12830
PY  - 2007
Y2  - January 2007
UR  - http://www.nber.org/papers/w12830
L1  - http://www.nber.org/papers/w12830.pdf
N1  - Author contact info:
Li Gan
Department of Economics
Texas A&M University
College Station, TX 77843-4228
Tel: 979/862-1667
Fax: 979/847-8747
E-Mail: gan@econmail.tamu.edu

Guan Gong
School of Economics
Shanghai University of Finance and Economics
777 Guoding RD, Shanghai
CHINA
E-Mail: ggong@mail.shufe.edu.cn
AB  - This paper investigates to what extent and through which channels that health and educational attainment are interdependent. A dynamic model of schooling, work, health expenditure, and savings is developed. The structural framework explicitly models two existing hypotheses on the correlation between health and education. The estimation results strongly support the interdependence between health and education. In particular, the estimated model indicates that an individual's education, health expenditure, and previous health status all affect his health status. Moreover, the individual's health status affects his mortality rate, wage, home production, and academic success. On average, having been sick before age 21 decreases the individual's education by 1.4 years. Policy experiments indicate that a health expenditure subsidy would have a larger impact on educational attainment than a tuition subsidy.
ER  -