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Serious health conditions or health "shocks" have strong effects on household wealth, but the effects for women are larger and more significant than the effects for men.  In his paper, "The Effects of Health Events on the Economic Status of Married Couples," published in Journal of Human Resources, Winter 2003, Hamilton College economics professor Stephen Wu has found that the difference arises from the fact that general living expenses increase when wives become seriously ill, while these expenditures are not affected when husbands become ill.

Wu explains there is a much higher probability that a couple will draw from existing assets to pay for general living expenses when a wife becomes ill. Health shocks to wives result in drops in total wealth of approximately $6,500.  He writes in the paper, "If the wife is the primary manager of household consumption decisions, then if she becomes ill, the husband may increase spending on everyday necessities such as food, clothing and related items. A husband may eat more meals at restaurants, as opposed to cooking them at home. If the wife is unable to perform certain daily activities, the couple may also hire outside help to take care of household chores."

What is the relevance of this information? Wu says, "It suggests that health insurance alone may be insufficient for protecting households from the economic effects of serious health conditions."

This study uses a nationally representative sample of 4,000 married couples derived from the Health and Retirement Study to examine the effects of health conditions on household wealth, income, and consumption. The primary respondent was between the ages of 51 and 61 during the first year of the survey.  Wu defines severe conditions as heart conditions, strokes, cancers and malignant tumors, lung diseases, and diabetes. 

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