Socioeconomic Gradient in Health: How Important is Material Deprivation?
In this paper we use the Spanish Living Conditions Survey (2005-2008) to investigate whether there is a socioeconomic gradient in health when alternative measures of socioeconomic status, apart from income, are considered. In particular we construct a material deprivation index that reflects some minimum standards of quality of life, and we analyze its impact on self-reported health. To address this issue, we use a deprivation index that incorporates comparison effects with societal peers and we estimate health equations using a random effects model. Furthermore, the model is extended to include a Mundlak term that corrects for the potential correlation between the error term and the regressors. Our results reveal that the relationship between health and income operates through comparison information with respect to societal peers. In contrast, material deprivation in terms of financial difficulties, basic necessities and housing conditions exerts a direct effect on individual health.
|Date of creation:||Mar 2012|
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- Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004.
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NBER Chapters,in: Perspectives on the Economics of Aging, pages 415-526
National Bureau of Economic Research, Inc.
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- McBride, Michael, 2001. "Relative-income effects on subjective well-being in the cross-section," Journal of Economic Behavior & Organization, Elsevier, vol. 45(3), pages 251-278, July. Full references (including those not matched with items on IDEAS)
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