Linked Lives and Bundled Budgets: Household Healthcare Spending Patterns Across Age and Social Status
Year: 2018
Type: article
Study design: Observational Study
Abstract: Fundamental cause theory predicts medical spending is associated with advantage, but cumulative disadvantage theory predicts it is associated with disadvantage. Which is correct? Using life course perspectives, we synthesize these theories to predict that medical spending is associated with advantage among younger households and disadvantage among older households. We explore high medical spending over age using data from the Consumer Expenditures Survey (n=59,557). First, we use finite mixture models to classify high medical spenders. Second, we use multinomial logistic regression to identify correlates of high medical spending. Third, we examine the budgetary consequences of high medical spending. Among younger households, high medical spending is associated with high educational attainment, and with more spending on housing and food. Among older households, high medical spending is associated with low socioeconomic status, and more restrictions in spending. Early in the life course, high medical spending is more likely to indicate an investment in future household well-being. Later in the life course, high medical spending is likely to indicate a health catastrophe. Findings underscore the need for future research and policy interventions to clarify and address the link between cumulative health advantages, health investments, and socioeconomic status differences across the life course.
Source: Innovation in Aging
Authors: C Mueller, R Charron-Chenier, B Bartlett, T Brown
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $3,977
OpenAlex ID: W2900569618