TY - JOUR AU - Currie,Janet AU - Stabile,Mark TI - Socioeconomic Status and Health: Why is the Relationship Stronger for Older Children? JF - National Bureau of Economic Research Working Paper Series VL - No. 9098 PY - 2002 Y2 - August 2002 DO - 10.3386/w9098 UR - http://www.nber.org/papers/w9098 L1 - http://www.nber.org/papers/w9098.pdf N1 - Author contact info: Janet Currie Department of Economics Center for Health and Wellbeing 185A Julis Romo Rabinowitz Building Princeton University Princeton, NJ 08544 Tel: 609-258-7393 E-Mail: jcurrie@princeton.edu Mark Stabile INSEAD Europe Campus Boulevard de Constance 77305 Fontainebleau France Tel: +33 (0) 1 60 72 48 44 E-Mail: mark.stabile@insead.edu AB - Case, Lubotsky, and Paxson (2001) show that the well-known relationship between socio- economic status (SES) and health exists in childhood and grows more pronounced with age. However, in cross-sectional data it is difficult to distinguish between two possible explanations. The first is that low-SES children are less able to respond to a given health shock. The second is that low SES children experience more shocks. We show, using panel data on Canadian children that: 1) the gradient we estimate in the cross section is very similar to that estimated previously using U.S. children; 2) both high and low-SES children recover from past health shocks to about the same degree; and 3) that the relationship between SES and health grows stronger over time mainly because low-SES children receive more negative health shocks. In addition, we examine the effect of health shocks on math and reading scores. We find that health shocks affect test scores and future health in very similar ways. Our results suggest that public policy aimed at reducing SES-related health differentials in children should focus on reducing the incidence of health shocks as well as on reducing disparities in access to palliative care. ER -