Wealth and Health in South Africa

GATE Working Paper Series WP 1911

23 Pages Posted: 17 Apr 2019

See all articles by Julien Albertini

Julien Albertini

University of Lyon 2

Anthony Terriau

Groupe d'Analyse et de Theorie Economique (GATE), CNRS, University of Lyon

Date Written: March 13, 2019

Abstract

In this paper, we investigate the impact of wealth on health in South Africa using the National Income Dynamics Study (NIDS). We estimate a two-stage probit model with inheritance as an instrumental variable for wealth. We find no significant effect of wealth on health at the individual level, consistent with most of the results found for developed countries. Alternative specifications to the health outcomes (self-reported health versus reported diseases) as well as the introduction of gifts as an additional instrumental variable delivers similar results. In addition, we decompose wealth into liquid and illiquid wealth. Despite the health effect being higher for liquid than for non-liquid wealth, none of these measures involve substantial or significant effects on health.

Keywords: Wealth, Health, Inheritance, South Africa

JEL Classification: C26, D31, I14, I15

Suggested Citation

Albertini, Julien and Terriau, Anthony, Wealth and Health in South Africa (March 13, 2019). GATE Working Paper Series WP 1911 . Available at SSRN: https://ssrn.com/abstract=3356800 or http://dx.doi.org/10.2139/ssrn.3356800

Julien Albertini (Contact Author)

University of Lyon 2 ( email )

Anthony Terriau

Groupe d'Analyse et de Theorie Economique (GATE), CNRS, University of Lyon ( email )

93 Chemin des Mouilles
Ecully, 69130
France

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