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1、THEWELL-BEINGOFTHEELDERLYANDWAGEARREARSINRUSSIAKasparRichterWorldBankAbstractAboutone-thirdofhouseholdswithelderlywerenotpaidtheirwagesduringthemid-1990sinRussia.Applyingmatchingestimationstoanationallyrepresentativesurvey,thestudyshowsthatwagearrear
2、shaddetrimentaleffectsonthewell-beingoftheelderlyinthesefamilies.Salariesinhouseholdswithwagearrearsdroppedbyalmosttwo-thirds,incomefellbymorethanone-third,andpovertydoubled.Behavioralresponseswereonlypartlyeffective.Thenetrevenuelossamountedtofive-si
3、xthsofthewageshockformen,andnine-tenthsofthewageshockforwomen.Theelderlycutbackonfoodexpensesbyreducingfoodpurchasesandadjustingtheirdiettowardscheapercalories,economisingonexpensesequaltoaroundone-quarterofthewagereduction.Caloricandproteinintakesdr
4、opped,althoughlessthanincome,andthenutritionalcontentoffoodconsumptionwithregardtovitaminsandmineralsdeteriorated.Wagearrearsworsenedmalehealthmorethanfemalehealth,eventhoughthedeclineinincomewascomparable.Functionallimitationsroseby8%formenand3%forw
5、omen,andself-ratedhealthdeclinedby2.5%formenand0.5%forwomen.Old-agemenwitharrearswerealmosttwiceaslikelytodiebeforethenextsurveyround,andfunctionallimitationsofsurvivingmenrosebymorethan10%.Bycontrast,therewasnoimpactonthenextroundshealthstatusofold-
6、agewomen.Arichdatasetisusedtodiscountalternativeexplanations,includingfeedbackfromhealthtoincome,othereconomicfactors,healthserviceaccess,healthbehavior,andenvironmentalconditions.(JEL:I12,I30,J14,J30)1.IntroductionAgrowingempiricalliteraturelinkshig
7、hsocioeconomicstatustogoodhealthandlowmortality,acrossgenderandagegroups(KitagawaandHauser1973;MarmotandWilkinson1999;Wilkinson1996).However,thebulkoftheevidencefailstoidentifyanexogenoussourceofvariationofhouseholdincome.1Inastan-dardhouseholdproduc
8、tionmodel,incomeandhealth(orinadynamiccontext,Acknowledgments:IwouldliketothankFrankCowell,ChristianDustmann,RobertT.Jensen,JohnMicklewright,NorbertSchady,VladimirShkolnikov,CorinneSiaens,twoanonymousreview-ers,andseminarparticipantsattheWorldBankand
