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Relative Income, Race, and Mortality

  • Douglas Miller

    (University of California at Berkeley)

  • Christina Paxson

    (Princeton University)

The topic of this paper is the relationship between relative income and health. We examine whether people whose incomes are high relative to others who live in the same geographic area have lower or higher mortality. This analysis holds own income fixed, so the question is not only whether own income matters for health, but also whether the incomes of others affects health given own income. It is well-established that wealthier individuals are healthier and live longer (see Sorlie et.al. (1995) and Elo and Preston (1996), and the review in Adler et.al. (1994)). The proposition that relative income affects health is more controversial. Although there are reasons why there could be health benefits from having wealthier neighbors, a growing body of literature argues that low relative income is a health hazard. This proposition runs counter to the Pareto principle and, if correct, could have very unorthodox implications for economic policy.

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File URL: http://wws-roxen.princeton.edu/chwpapers/papers/relativeincome.pdf
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Paper provided by Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing. in its series Working Papers with number 269.

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Date of creation: Jul 2001
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Handle: RePEc:pri:cheawb:relativeincome
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  1. Christine Eibner & William N. Evans, 2005. "Relative Deprivation, Poor Health Habits, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
  2. Baqir, Reza & Easterly, William & Alesina, Alberto, 1999. "Public Goods and Ethnic Divisions," Scholarly Articles 4551797, Harvard University Department of Economics.
  3. 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.
  4. Angus Deaton & Darren Lubotsky, 2002. "Mortality, inequality and race in American cities and states," Working Papers 263, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  5. Angus S. Deaton & Christina Paxson, 2001. "Mortality, Education, Income, and Inequality among American Cohorts," NBER Chapters, in: Themes in the Economics of Aging, pages 129-170 National Bureau of Economic Research, Inc.
  6. 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.
  7. Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz & Lisa Sanbonmatsu, 2004. "Moving To Opportunity And Tranquility: Neighborhood Effects On Adult Economic Self-Sufficiency And Health From A Randomized Housing Voucher Experiment," Working Papers 247, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  8. Amitabh Chandra & Jonathan Skinner, 2003. "Geography and Racial Health Disparities," NBER Working Papers 9513, National Bureau of Economic Research, Inc.
  9. Soobader, Mah-Jabeen & LeClere, Felicia B., 1999. "Aggregation and the measurement of income inequality: effects on morbidity," Social Science & Medicine, Elsevier, vol. 48(6), pages 733-744, March.
  10. Jonathan Skinner & Douglas Staiger, 2005. "Technology adoption from hybrid corn to beta blockers," Proceedings, Federal Reserve Bank of San Francisco.
  11. Powell, James L. & Stoker, Thomas M., 1985. "The estimation of complete aggregation structures," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 317-344.
  12. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
  13. 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).
  14. Michael Ash & T. Robert Fetter, 2004. "Who Lives on the Wrong Side of the Environmental Tracks? Evidence from the EPA's Risk-Screening Environmental Indicators Model," Social Science Quarterly, Southwestern Social Science Association, vol. 85(2), pages 441-462.
  15. Lawrence Katz & Jeffrey R. Kling & B. Jeffrey Liebman & Lisa Sanbonmatsu, 2004. "Moving to Opportunity and Tranquility: Neighborhood Effects on Adult Economic Self-Sufficiency and Health From a Randomized Housing Voucher Experiment," Working Papers 860, Princeton University, Department of Economics, Industrial Relations Section..
  16. Elo, Irma T. & Preston, Samuel H., 1996. "Educational differentials in mortality: United States, 1979-1985," Social Science & Medicine, Elsevier, vol. 42(1), pages 47-57, January.
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