Effect of Objective Health on the Income of Ecuadorians
DOI:
https://doi.org/10.25097/rep.n40.2024.01Keywords:
Health, Income, Mincer's Model, Grossman's Model.Abstract
According to human capital theory, income depends on education, experience, and health. Here we study the effect of health on the income of individuals in Ecuador. To do so, we use instrumental variables and simultaneous equations in the extended Mincer (1974) equation and the Grossman (1972) model. Information is obtained from the 2013-2014 Living Conditions Survey, and parameters are estimated by two-stage least squares, generalised method of moments, and three-stage least squares. The results show that a poor state of personal health has a negative impact on income, this impact is greater in the male gender. Likewise, it affects more people in the Sierra region and independent workers.
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