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The Association between Income Inequality and Health in Advanced Countries

Author

Listed:
  • Foreman, Stephen

    (Robert Morris University, Department of Nursing and Department of Economics, Pittsburgh, Pennsylvania)

Abstract

This paper uses fixed effects time series cross section models to assess the impact of income distributions, wealth, education, health care spending, sanitation and public health on health across 34 high income countries over 15 years. The study employs several measures of health including survival to age 65 and neonatal and adult mortality. We compare the Gini coefficient as a measure of income inequality with a measure that incorporates income shares of high and low income segments of the population, the Palma ratio. We evaluate the effect size of the variables’ correlation with health to assess the level of the relative importance of the relationship between income inequality and health. We control for income, education, employment, technology and other variables to isolate the association between income inequality and health. Our findings indicate that income distribution in advanced countries may have an independent impact on health. The greater the share of national income earned by the poorest 40% of the population (and the lower the share of the richest 10%) the greater the odds of survival to age 65 and the lower neonatal and adult mortality rates. The effect size for survival to 65 is small but the effect size for reduced neonatal and adult mortality is substantial. La relazione tra disuguaglianze nei redditi e salute nei paesi avanzati In questo studio vengono utilizzati modelli cross section di serie temporali ad effetto fisso per valutare l’impatto della distribuzione del reddito, del benessere, dell’istruzione, della spesa sanitaria pubblica sulla salute in 34 paesi ad alto reddito in un periodo di 15 anni. La ricerca considera diverse variabili come la sopravvivenza oltre i 65 anni e la mortalità infantile ed adulta. Viene utilizzato il coefficiente di Gini come parametro di disuguaglianza dei redditi includendo fasce di popolazione ad alto e basso reddito, cioè il coefficiente di Palma. Viene esaminato l’effetto della relazione tra le variabili e il livello di salute per valutare l’importanza relativa della relazione tra disuguaglianza di reddito e salute. Vengono considerati il reddito, l’istruzione, l’occupazione, la tecnologia ed altre variabili per individuare la relazione disuguaglianza di reddito e salute. I risultati indicano che la distribuzione del reddito nei paesi avanzati può avere un impatto indipendente sulla salute. Maggiore è la quota del reddito nazionale guadagnata dal 40% più povero della popolazione (e minore la quota del 10% più ricco) maggiori saranno le possibilità di sopravvivenza a 65 anni e minori saranno i tassi di mortalità neonatale e adulta. L’effetto sulla sopravvivenza a 65 anni è poco significativo, ma quello sulla riduzione della mortalità neonatale ed adulta è sostanziale.

Suggested Citation

  • Foreman, Stephen, 2017. "The Association between Income Inequality and Health in Advanced Countries," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(4), pages 527-540.
  • Handle: RePEc:ris:ecoint:0816
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    More about this item

    Keywords

    Income Distribution; Health; Gini Coefficient; Inequality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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