Revisiting Health and Income Inequality Relationship:Evidence from Developing Countries
In general, countries with more equal income distribution generally enjoy better health. Earlier empirical studies on the relationship between income distribution and health at country level present strong evidence that income inequality on an average impedes the improvement of population health. However, a majority of these empirical studies are based on data from either only developed countries or pooled data from developing and developed countries. They mainly study the relationship at a single point of time or at an average of several years. These studies also fail to control for country specific unobserved heterogeneity. Departing from the general trend of current literature, this paper examines the health-income inequality hypothesis using panel data from 31 low income and low middle income countries for the period of 1982-2002. The results from the simple pooled OLS analysis indicate that health and income inequality is negatively related in these countries. This finding is in line with the most of the earlier cross country studies. However, application of fixed effects and random effects model to control country specific heterogeneity provides contradictory results. In other words, my findings from this study confirm that there is a positive relation between health and income distribution in this set of developing countries over this period.
|Date of creation:||15 Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Céline Gimet & Thomas Lagoarde-Segot, 2011.
"A closer look at financial development and income distribution,"
- Gimet, Céline & Lagoarde-Segot, Thomas, 2011. "A closer look at financial development and income distribution," Journal of Banking & Finance, Elsevier, vol. 35(7), pages 1698-1713, July.
- Céline Gimet & Thomas Lagoarde-Segot, 2011. "A closer look at financial development and income distribution," Working Papers 1104, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Breusch, T.S. & Pagan, A.R., .
"The Lagrange multiplier test and its applications to model specification in econometrics,"
CORE Discussion Papers RP
412, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 239-253.
- Leigh, Andrew & Jencks, Christopher, 2007.
"Inequality and mortality: Long-run evidence from a panel of countries,"
Journal of Health Economics,
Elsevier, vol. 26(1), pages 1-24, January.
- Leigh, Andrew & Jencks, Christopher, 2006. "Inequality and Mortality: Long-Run Evidence from a Panel of Countries," Working Paper Series rwp06-032, Harvard University, John F. Kennedy School of Government.
- Andrew Leigh & Christopher Jencks, 2006. "Inequality and Mortality: Long-Run Evidence from a Panel of Countries," CEPR Discussion Papers 533, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Baltagi, Badi H. & Wu, Ping X., 1999. "Unequally Spaced Panel Data Regressions With Ar(1) Disturbances," Econometric Theory, Cambridge University Press, vol. 15(06), pages 814-823, December.
- Jennifer M. Mellor & Jeffrey D. Milyo, 2001. "Income inequality and health," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(1), pages 151-155.
- Jennifer M. Mellor & Jeffrey Milyo, 2002.
"Income Inequality and Health Status in the United States: Evidence from the Current Population Survey,"
Journal of Human Resources,
University of Wisconsin Press, vol. 37(3), pages 510-539.
- 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.
- Wilkinson, Richard G & Pickett, Kate E., 2006. "Income inequality and population health: A review and explanation of the evidence," Social Science & Medicine, Elsevier, vol. 62(7), pages 1768-1784, April.
- Jeffrey M. Wooldridge, 2001.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262232197, March.
- Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, March.
- Babones, Salvatore J., 2008. "Income inequality and population health: Correlation and causality," Social Science & Medicine, Elsevier, vol. 66(7), pages 1614-1626, April.
- Hugh Gravelle & John Wildman & Matthew Sutton, .
"Income, Income Inequality and Health: What can we Learn from Aggregate Data?,"
00/26, Department of Economics, University of York.
- Gravelle, Hugh & Wildman, John & Sutton, Matthew, 2002. "Income, income inequality and health: what can we learn from aggregate data?," Social Science & Medicine, Elsevier, vol. 54(4), pages 577-589, February.
- Meschi, Elena & Vivarelli, Marco, 2009. "Trade and Income Inequality in Developing Countries," World Development, Elsevier, vol. 37(2), pages 287-302, February.
- Herzer, Dierk & Nunnenkamp, Peter, 2011.
"Income inequality and health: New evidence from panel data,"
Kiel Working Papers
1736, Kiel Institute for the World Economy (IfW).
- Dierk Herzer & Peter Nunnenkamp, 2011. "Income Inequality and Health: New Evidence from Panel Data," Kiel Working Papers 1736, Kiel Institute for the World Economy.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39766. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.