Parental income and child health in Germany

Using newly available data from Germany, we study the relationship between parental income and child health. We find a strong gradient between parental income and subjective child health as has been documented earlier in the United States, Canada, and the United Kingdom. The relationship in Germany is about as strong as in the United States and stronger than in the United Kingdom. However, in contrast to US results, we do not find consistent evidence that the disadvantages associated with low parental income accumulate as the child ages, nor that children from low socioeconomic background are more likely to suffer from doctor-diagnosed conditions. There is some evidence, however, that high-income children are better able to cope with the adverse consequences of chronic conditions. Investigating potential diagnosis bias, we find only weak evidence for health disadvantages for low-income children when using objective health measures, but some evidence for under-utilization of health services among low-income families.