Do Wealth Shocks Affect Health? New Evidence from the Housing Boom

Eleonora Fichera, John Gathergood

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

We exploit large exogenous changes in housing wealth to examine the impact of wealth gains and losses on individual health. In UK household, panel data house price increases, which endow owners with greater wealth, lower the likelihood of home owners exhibiting a range of non-chronic health conditions and improve their self-assessed health with no effect on their psychological health. These effects are not transitory and persist over a 10-year period. Using a range of fixed effects models, we provide robust evidence that these results are not biased by reverse causality or omitted factors. For owners' wealth gains affect labour supply and leisure choices indicating that house price increases allow individuals to reduce intensity of work with commensurate health benefits.
Original languageEnglish
Pages (from-to)57-69
Number of pages13
JournalHealth Economics
Volume25
Issue numberS2
Early online date9 Nov 2016
DOIs
Publication statusPublished - 30 Nov 2016

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