Does inequality in health impede growth?
AbstractThis paper investigates the effects of inequality in health on economic growth in low and middle income countries.ï€ª The empirical part of the paper uses an original cross-national panel data set covering 62 low and middle income countries over the period 1985 to 2007. I find a substantial and relatively robust negative effect of health inequality on income levels and income growth controlling for life expectancy, country and time fixed-effects and a large number of other effects that have been shown to matter for growth. The effect also holds if health inequality is instrumented to circumvent a potential problem of reverse causality. Hence, increasing access to health care for the poor can make a substantial contribution to economic growth not only through its effect on life expectancy but also through its effect on reduced health inequality.
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Bibliographic InfoPaper provided by International Institute of Social Studies of Erasmus University (ISS), The Hague in its series ISS Working Papers - General Series with number 501.
Date of creation: 01 May 2010
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economic growth; health inequality; health gradient;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-DEV-2010-10-16 (Development)
- NEP-FDG-2010-10-16 (Financial Development & Growth)
- NEP-HAP-2010-10-16 (Economics of Happiness)
- NEP-HEA-2010-10-16 (Health Economics)
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