Abstract: In this paper the relationship between health limitations and socio-economic situation in Spain is analysed. Differences in differences combining with matching methods are used to obtain impact estimates. We use the six waves of data available (2004-2009) in the European Statistics on Income and Living Conditions (EU-SILC). Results show a strong relationship between health limitations and labour market status although some of the most important variables to take into account are related with individual's level of education and income subsidies. Also, we find heterogeneity across age groups.

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