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Income Inequality and Individual Health: Exploring the Association in a Developing Country

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We use individual and multi-level data from Zambia on child nutritional health to test the absolute income hypothesis (AIH), the relative income hypothesis (RIH) and the income inequality hypothesis (IIH). The results confirm a non-linear positive relation between economic resources and health, confirming the AIH. For the RIH we find sensitivity to what reference group is used. Most interestingly, while the IIH predicts that income inequality, independent from individual income, will affect health negatively, we find higher income inequality to robustly associate with better child health. The results suggest that the relationship between inequality and health in developing contexts might be very different from the predominant view in the existing literature mainly based on developed countries, and that alternative mechanisms might mediate the relationship in poor countries.

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  • Nilsson, Therese & Bergh, Andreas, 2012. "Income Inequality and Individual Health: Exploring the Association in a Developing Country," Working Paper Series 899, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0899
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    1. Mirjalili, Seyed hossein & Moradkhani, Narges & Abbaszade, Mehri, 2020. "بررسی رابطه درآمد با سلامت زنان(نمونه مورد مطالعه کارکنان زن دانشگاه زنجان) [Investigating the Relationship between Income and Women's Health (Case study of female staff of Zanjan University)]," MPRA Paper 125627, University Library of Munich, Germany, revised 06 Mar 2020.
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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