Socioeconomic Gradient in Health: How Important is Material Deprivation?
AbstractIn this paper we use the Spanish Living Conditions Survey (2005-2008) to investigate whether there is a socioeconomic gradient in health when alternative measures of socioeconomic status, apart from income, are considered. In particular we construct a material deprivation index that reflects some minimum standards of quality of life, and we analyze its impact on self-reported health. To address this issue, we use a deprivation index that incorporates comparison effects with societal peers and we estimate health equations using a random effects model. Furthermore, the model is extended to include a Mundlak term that corrects for the potential correlation between the error term and the regressors. Our results reveal that the relationship between health and income operates through comparison information with respect to societal peers. In contrast, material deprivation in terms of financial difficulties, basic necessities and housing conditions exerts a direct effect on individual health.
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Bibliographic InfoPaper provided by Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) in its series Working Papers in Economic Theory with number 2012/07.
Length: 31 pages
Date of creation: Mar 2012
Date of revision:
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Web page: http://www.uam.es/departamentos/economicas/analecon/default.html
More information through EDIRC
Material deprivation; Mundlak correction; random effects model; self-assessed health.;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I10 - Health, Education, and Welfare - - Health - - - General
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