A1449
Title: Minimum wage and health status in Europe
Authors: Aleksandra Majchrowska - University of Lodz (Poland)
Sylwia Roszkowska - Jagiellonian University (Poland) [presenting]
Abstract: The aim is to analyse the relationship between the minimum wage and the health status and mortality in European countries and regions. On the one hand, higher minimum wages can improve individuals' health by reducing financial stress and increasing consumption and investment in health. The significance of both the level of minimum wage and its changes and regional differences is analysed to explain the inter- and intraregional differences in health status and mortality across European countries. The analysis uses the classic methods of panel data analysis as well as those allowing for endogeneity, including the general method of moments estimator. A wide range of control variables are used, following the concepts of a past study and the rainbow model of health determinants proposed by another study, showing the importance of lifestyle and broadly defined socio-economic, cultural and environmental factors in health status. The results indicate that in countries with higher minimum-to-average wage ratios, the health status is higher, and the mortality is lower due to lower income inequalities. Moreover, the health status is higher, and the mortality rate is lower in countries with lower regional disparities in the minimum to average wage ratio.
