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Income Inequality and Health: Panel Data Evidence from Canada

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  • Latif Ehsan

    (Department of Economics, Thompson Rivers University, Kamloops, BC, Canada)

Abstract

Using longitudinal data from the Canadian National Population Survey (1994–2006), this study examines the impact of income inequality on current health outcomes. The result suggests that once unobserved individual specific heterogeneity is controlled for, income inequality as measured by Gini Coefficient has no significant impact on current health status. This result holds true for contemporaneous income inequality as well as for lagged income inequalities. There are mixed results from the robustness check using various measures of income inequality. Decile Ratio (90P/10P) and Coefficient of Variation have no impacts on current health status. On the other hand, contemporaneous income inequality measured by Log Mean Deviation and Theil Index have significant negative effects on current health. All of the models suggest that absolute income has a significant positive effect on health status

Suggested Citation

  • Latif Ehsan, 2015. "Income Inequality and Health: Panel Data Evidence from Canada," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 927-959, April.
    • Handle: RePEc:bpj:bejeap:v:15:y:2015:i:2:p:927-959:n:5
    DOI: 10.1515/bejeap-2013-0184
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    References listed on IDEAS

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