This paper examines the relationship between economic conditions and health using fixed-effect models with state-level data from 1972 to 1991. Health is measured by total and age-specific mortality rates, as well as 10 specific causes of death. The results show that total mortality and nine of the ten causes of death exhibit procyclical variation, with suicides being the exception. Mortality fluctuations are larger for 20-44 year olds than for older individuals. The relationship between personal income and health is weak and sensitive to model specifications, time periods, and dependent variables. These findings suggest that cyclical variations in the time costs of medical care or healthy lifestyles, and the negative health effects of job-holding, may be important. Economic contractions can affect health in three ways: changes in the relative price of medical care, changes in baseline health, and changes in wage rates. The study finds that unemployment rates are negatively and significantly related to total mortality and to nine of the ten specific causes of fatalities. The procyclical variation in death rates is stronger for 20-44 year olds than for older individuals. Personal incomes are negatively associated with some types of mortality, but the estimated effects are often statistically insignificant and sensitive to model specifications. The study concludes that health improves as the economy deteriorates, challenging simple economic models emphasizing health capital or psychological theories focusing on stress from recessions. Instead, the results suggest a potentially important role for cyclical fluctuations in the time costs of medical care or healthy lifestyles and raise the possibility that employment itself may have adverse effects on health. The findings also indicate that the relationship between macroeconomic conditions and health is complex and multifaceted, with different age groups and causes of death showing varying responses. The study highlights the importance of considering both economic and demographic factors in understanding the relationship between economic conditions and health.This paper examines the relationship between economic conditions and health using fixed-effect models with state-level data from 1972 to 1991. Health is measured by total and age-specific mortality rates, as well as 10 specific causes of death. The results show that total mortality and nine of the ten causes of death exhibit procyclical variation, with suicides being the exception. Mortality fluctuations are larger for 20-44 year olds than for older individuals. The relationship between personal income and health is weak and sensitive to model specifications, time periods, and dependent variables. These findings suggest that cyclical variations in the time costs of medical care or healthy lifestyles, and the negative health effects of job-holding, may be important. Economic contractions can affect health in three ways: changes in the relative price of medical care, changes in baseline health, and changes in wage rates. The study finds that unemployment rates are negatively and significantly related to total mortality and to nine of the ten specific causes of fatalities. The procyclical variation in death rates is stronger for 20-44 year olds than for older individuals. Personal incomes are negatively associated with some types of mortality, but the estimated effects are often statistically insignificant and sensitive to model specifications. The study concludes that health improves as the economy deteriorates, challenging simple economic models emphasizing health capital or psychological theories focusing on stress from recessions. Instead, the results suggest a potentially important role for cyclical fluctuations in the time costs of medical care or healthy lifestyles and raise the possibility that employment itself may have adverse effects on health. The findings also indicate that the relationship between macroeconomic conditions and health is complex and multifaceted, with different age groups and causes of death showing varying responses. The study highlights the importance of considering both economic and demographic factors in understanding the relationship between economic conditions and health.