Health and Household Income in Vietnam

Abstract

This study provides empirical evidence regarding to the relationship between household income and individual health , as well as the correlation between health and education at provincial level. We apply the concept of human health capital theory into models which treat health as a form of human capital in income process and education progress. We e mploy two datasets, one is Vietnam Household Living Standard Survey wave in 2002, 2004 and 2006 , and the other is the dataset for provincial level in the year 1999, 2002 and 2004, in order to make two panels. Constructing panels allow us to exploit “within” variation in health, income and education to figure out the possible unobservable bias ed estimates of the impact of health on income and education on health in a short period of panel data. Household income is significantly affected by individual health and life expectancy is considerably influenced by education. These findings could be seen as evidence for policy makers in health and education policy in the context of development planning.