Abstract:
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.