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Income Inequality and Mental Health

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Abstract

The causal association between absolute income and health is well established, however the relationship between income inequality and health is not. The conclusions from the received studies vary across the region or country studied and/or the methodology employed. Using the Household, Income and Labour Dynamics in Australia panel survey, this paper investigates the relationship between mental health and inequality in Australia. A variety of income inequality indices are calculated to test both the Income Inequality and Relative Deprivation Hypothesis. We find that mental health is only adversely affected by the presence of relative deprivation to a very small degree. In addition we do not find support for the Income Inequality Hypothesis. Importantly our results are robust to a number of sensitivity analyses.

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  • Grace Lordan & Prasada Rao & Lucy Bechtel, 2012. "Income Inequality and Mental Health," Discussion Papers Series 456, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:456
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    File URL: http://www.uq.edu.au/economics/abstract/456.pdf
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    Cited by:

    1. Mujcic, Redzo, 2014. "Are fruit and vegetables good for our mental and physical health? Panel data evidence from Australia," MPRA Paper 59149, University Library of Munich, Germany.

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