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Income, Income Inequality, and Health: Evidence from China

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Author Info
Li, Hongbin
Zhu, Yi

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Abstract

This paper tests using survey data from China whether individual health is associated with income and community-level income inequality. Although poor health and high inequality are key features of many developing countries, most of the earlier literature has drawn on data from developed countries in studying the association between the two. We find that self-reported health status increases with per capita income, but at a decreasing rate. Controlling for per capita income, we find an inverted-U association between self-reported health status and income inequality, which suggests that high inequality in a community poses threats to health. We also find that high inequality increases the probability of health-compromising behavior such as smoking and alcohol consumption. Most of our findings are robust to different measures of health status and income inequality.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2006/dp2006-07.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number DP2006/07.

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Length: 32 pages
Date of creation: 2006
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Handle: RePEc:unu:wpaper:dp2006-07

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Related research
Keywords: health; income; inequality; behaviour; China;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dwayne Benjamin & Loren Brandt & John Giles, 2006. "Inequality and Growth in Rural China: Does Higher Inequality Impede Growth?," Working Papers tecipa-237, University of Toronto, Department of Economics. [Downloadable!]
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  2. Angus Deaton, 2001. "Relative deprivation, inequality, and mortality," Working Papers 275, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing.. [Downloadable!]
    Other versions:
  3. 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). [Downloadable!] (restricted)
  4. Deaton, A., 1998. "Aging and Inequality in Income and Health," Papers 181, Princeton, Woodrow Wilson School - Development Studies.
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  5. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr. [Downloadable!] (restricted)
  6. Yitzhaki, Shlomo, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 321-24, May. [Downloadable!] (restricted)
  7. Christine Eibner & William N. Evans, 2005. "Relative Deprivation, Poor Health Habits, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 40(3). [Downloadable!] (restricted)
  8. Philippe Aghion & Eve Caroli & Cecilia Garcia-Penalosa, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December. [Downloadable!] (restricted)
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  9. Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Preserving Market Incentives," Working Papers 97042, Stanford University, Department of Economics. [Downloadable!]
  10. Jennifer Mellor & Jeffrey Milyo, 1998. "Income Inequality and Health Status in the United States: Evidence From the Current Population Survey," Discussion Papers Series, Department of Economics, Tufts University 9815, Department of Economics, Tufts University. [Downloadable!]
  11. James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring. [Downloadable!] (restricted)
  12. Waldmann, Robert J, 1992. "Income Distribution and Infant Mortality," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1283-302, November. [Downloadable!] (restricted)
  13. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June. [Downloadable!] (restricted)
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  14. Qian, Yingyi & Weingast, Barry R, 1997. "Federalism as a Commitment to Reserving Market Incentives," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 83-92, Fall. [Downloadable!] (restricted)
  15. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March. [Downloadable!] (restricted)
  16. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
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  17. Christine E. Eibner & William N. Evans, 2001. "Relative Deprivation, Poor Health Habits and Mortality," Working Papers 265, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing.. [Downloadable!]
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Cited by:
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  1. Leonardo Becchetti & Giuseppina Gianfreda, 2008. "When consumption heals producers: the effect of fair trade on marginalised producers’ health and productivity," Working Papers 86, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
  2. Luo, Xubei & Zhu, Nong, 2008. "Rising income inequality in China : a race to the top," Policy Research Working Paper Series 4700, The World Bank. [Downloadable!]
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