Disentangling the relationship between health and income
The nature of the relationship between health and income is still not clearly defined. It is believed that personal income affects health but this may not be the end of the story. Income may also play its part through issues of relativity and deprivation. It may even be possible that these latter indirect effects are more important determinants of health than individual income. This paper investigates these issues by focusing on the relationship between income and health. The models are estimated using parametric and semiparametric panel data frameworks in order to ameliorate problems of misspecification and unobservable heterogeneity. The results demonstrate strong evidence for income affecting health but limited evidence for relative deprivation.
|Date of creation:||Oct 2005|
|Contact details of provider:|| Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom|
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