Efecto de la salud objetiva en los ingresos de los ecuatorianos

Abstract

Multiple papers have studied the relationship of income with education and experience in Ecuador, but none with health. This paper studies the effect of health on individual income using instrumental variables and simultaneous equations. To achieve this, we use the Mincer equation (1974), in an extended version, and the Grossman model (1972). The information was obtained from the living conditions survey 2013-2014 and the parameters were estimated by least squares in two stages, generalized method of moments and least squares in three stages. The results show that a poor state in health has a large negative effect on personal income, this impact is greater in the male gender. Separating into other groups, the coefficient of health is more unfavorable in the highlands region and in the self-employed. Other variables related to health and that define income are: height and body mass index.