In the health production literature, schooling has distinguished itself as "the most important correlate of good health," according to Fuchs [11]. Economists have been so persuasive in their demonstration of the importance of schooling that medical researchers are increasingly drawing attention to lack of schooling as a "risk factor" in a variety of diseases [24]. While there is little doubt among health economists about the empirical strength of the relation between schooling and health, there is considerable controversy surrounding explanations for the empirical association. Grossman [15; 16] maintains that schooling directly enhances health, for example, by increasing knowledge pertaining to healthy habits. Fuchs [11; 12], on the other hand, maintains that schooling serves as an empirical proxy for some unobserved "third" variable which also happens to be associated with health. The "third" variable most frequently mentioned is time preference. Fuchs rejects the Grossman idea that education plays a direct role in promoting health. The debate has relevance for policy. If schooling promotes health, it could be argued that expenditures on schooling could be compared to, for example, expenditures on medical care as an alternative for increasing average life-spans. But, if Fuchs is right, any expenditure comparisons would be futile.