The Effects of Income Volatility on Medical Deprivation
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This study examines how income volatility in households affects their level of medical deprivation. Using SIPP data from 2002-2003, the study compares the relationship between medical hardship of households and measures of income volatility, such as the variation of average income, and the largest monthly negative income shock, over a period of 12 months. The study also examines the interaction between medical deprivation and the percent of months in which household members had no health insurance. Using a logistic regression model, this study shows that income volatility as well as household members having no health insurance affect the predicted probability of medical deprivation. Gaining a stronger understanding of the interaction between income fluctuations and material hardships, including medical deprivation, will allow policy makers to better understand influences on the well-being of low-income families.