A causality between health and poverty: an empirical analysis and policy implications in the Korean society

An empirical perspective on the relationship between health and poverty is examined in Korea. Combining selection and causation models, the authors developed a simultaneous equations system with health and poverty as exogenous variables. Based on a national health survey, the possible impact of health on household poverty was tested. The authors found that poor health determines household poverty in several ways, controlling for other confounding factors. Feasible strategies to reduce illness in low-income classes include monitoring the poor with their health status, extending the Medicaid program, and expanding public hospitals for the poor class to access to health services.