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Income inequality and self-rated health status: Evidence from the European Community Household Panel

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  • Hildebrand, Vincent

    (Department of Economics, Glendon College, York University, Canada and CEPS/INSTEAD, G.-D. Luxembourg)

  • Van Kerm, Philippe

    (CEPS/INSTEAD, G.-D. Luxembourg)

Abstract

We examine the effect of income inequality on individual self-rated health status in a pooled sample of 10 member states of the European Union using longitudinal data from the European Community Household Panel (ECHP) survey. Taking advantage of the longitudinal and cross-national nature of our data, and carefully modelling the self-reported health information, we avoid several of the pitfalls suffered by earlier studies on this topic. We calculate income inequality indices measured at two standard levels of geography (NUTS-0 and NUTS-1) and find consistent evidence that income inequality is negatively related to self-rated health status in the European Union for both men and women. However, despite its statistical significance, the magnitude of the impact of inequality on health is small.

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Bibliographic Info

Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2005-01.

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Length: 58 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:irs:iriswp:2005-01

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Keywords: Self-rated health ; Income inequality ; European Union ; Panel data;

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  1. Ulf-G. Gerdtham & Magnus Johannesson, 2004. "Absolute Income, Relative Income, Income Inequality, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  2. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
  3. Jennifer M. Mellor & Jeffrey D. Milyo, 2001. "Income inequality and health," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(1), pages 151-155.
  4. Angus Deaton, 2002. "Health, inequality, and economic development," Working Papers 270, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  5. Angus Deaton & Christina Paxson, 1999. "Mortality, education, income and inequality among American cohorts," Working Papers 279, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  6. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June.
  7. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494.
  8. Gravelle, Hugh & Wildman, John & Sutton, Matthew, 2002. "Income, income inequality and health: what can we learn from aggregate data?," Social Science & Medicine, Elsevier, vol. 54(4), pages 577-589, February.
  9. Frank A. Cowell & Emmanuel Flachaire, 2004. "Income distribution and inequality measurement : the problem of extreme values," Cahiers de la Maison des Sciences Economiques v04101, Université Panthéon-Sorbonne (Paris 1).
  10. Paula K. Lorgelly & Joanne Lindley, 2008. "What is the relationship between income inequality and health? Evidence from the BHPS," Health Economics, John Wiley & Sons, Ltd., vol. 17(2), pages 249-265.
  11. Jennifer M. Mellor & Jeffrey Milyo, 1999. "Re-Examining the Evidence of an Ecological Association between Income Inequality and Health," Discussion Papers Series, Department of Economics, Tufts University 9922, Department of Economics, Tufts University.
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Cited by:
  1. Böckerman, Petri & Ilmakunnas, Pekka, 2007. "Unemployment and self-assessed health: Evidence from panel data," MPRA Paper 1798, University Library of Munich, Germany.
  2. Fusco, Alessio & Dickes, Paul, 2006. "Rasch Model and Multidimensional Poverty Measurement," IRISS Working Paper Series 2006-02, IRISS at CEPS/INSTEAD.
  3. Böckerman, Petri, 2010. "Top income shares and mortality: Evidence from advanced countries," MPRA Paper 19970, University Library of Munich, Germany.
  4. Bakshi, Sanjeev & Pathak, Prasanta, 2010. "What makes them feel healthier? the correlates of self-perceived health among older adults in India," MPRA Paper 40541, University Library of Munich, Germany.
  5. Cristina Blanco-Perez, 2012. "Rethinking the Relative Income Hypothesis," SOEPpapers on Multidisciplinary Panel Data Research 501, DIW Berlin, The German Socio-Economic Panel (SOEP).
  6. Modrek, Sepideh & Dow, William H. & Rosero-Bixby, Luis, 2012. "Long-term association of economic inequality and mortality in adult Costa Ricans," Social Science & Medicine, Elsevier, vol. 74(2), pages 158-166.
  7. Tom Van Ourti & Eddy Van Doorslaer & Xander Koolman, 2006. "The Effect of Growth and Inequality in Incomes on Health Inequality: Theory and Empirical Evidence from the European Panel," Tinbergen Institute Discussion Papers 06-108/3, Tinbergen Institute.
  8. Van Kerm, Philippe, 2006. "Comparisons of income mobility profiles," IRISS Working Paper Series 2006-03, IRISS at CEPS/INSTEAD.
  9. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
  10. Van Ourti, Tom & van Doorslaer, Eddy & Koolman, Xander, 2009. "The effect of income growth and inequality on health inequality: Theory and empirical evidence from the European Panel," Journal of Health Economics, Elsevier, vol. 28(3), pages 525-539, May.
  11. Cooper, D. & McCausland, W.D. & Theodossiou, I., 2006. "The health hazards of unemployment and poor education: The socioeconomic determinants of health duration in the European Union," Economics & Human Biology, Elsevier, vol. 4(3), pages 273-297, December.

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