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Healthcare investment and income inequality

Author

Listed:
  • Bhattacharjee, Ayona
  • Shin, Jong Kook
  • Subramanian, Chetan
  • Swaminathan, Shailender

Abstract

This paper examines how the relative shares of public and private health expenditures impact income inequality. We study a two period overlapping generation's growth model in which longevity is determined by both private and public health expenditure and human capital is the engine of growth. Increased investment in health, reduces mortality, raises return to education and affects income inequality. In such a framework we show that the cross-section earnings inequality is non-decreasing in the private share of health expenditure.

Suggested Citation

  • Bhattacharjee, Ayona & Shin, Jong Kook & Subramanian, Chetan & Swaminathan, Shailender, 2017. "Healthcare investment and income inequality," Journal of Health Economics, Elsevier, vol. 56(C), pages 163-177.
    • Handle: RePEc:eee:jhecon:v:56:y:2017:i:c:p:163-177
    DOI: 10.1016/j.jhealeco.2017.08.007
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    Citations

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    Cited by:

    1. Constant, Karine & Davin, Marion, 2021. "Pollution, children’s health and the evolution of human capital inequality," Mathematical Social Sciences, Elsevier, vol. 112(C), pages 9-25.
    2. Luca Marchiori & Olivier Pierrard, 2023. "Health subsidies, prevention and welfare," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(6), pages 1304-1336, December.
    3. Guanghua Wan & Chen Wang & Xun Zhang, 2021. "The Poverty-Growth-Inequality Triangle: Asia 1960s to 2010s," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 795-822, February.
    4. Thibault, Emmanuel & Ponthieres, Grégory, 2023. "Life Expectancy, Income and Long-Term Care: The Preston Curve Reexamined," TSE Working Papers 23-1474, Toulouse School of Economics (TSE).

    More about this item

    Keywords

    Public and private health; Longevity; Income inequality; Growth;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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