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Disentangling the relationship between health and income

Author

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  • Andrew M Jones
  • John Wildman

Abstract

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.

Suggested Citation

  • Andrew M Jones & John Wildman, 2005. "Disentangling the relationship between health and income," Health, Econometrics and Data Group (HEDG) Working Papers 05/07, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:05/07
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Inequality, poverty, and health: Comments on the Globe’s coverage
      by Chris Auld in ChrisAuld.com on 2013-11-13 03:21:14

    Citations

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    Cited by:

    1. David Cantarero & Marta Pascual & Jose Maria Sarabia, 2004. "Can income inequality contribute to understand inequalities in health? An empirical approach based on the European Community Household Panel," ERSA conference papers ersa04p230, European Regional Science Association.
    2. Paula K. Lorgelly & Joanne Lindley, 2008. "What is the relationship between income inequality and health? Evidence from the BHPS," Health Economics, John Wiley & Sons, Ltd., vol. 17(2), pages 249-265.
    3. Gunasekara, Fiona Imlach & Carter, Kristie & Blakely, Tony, 2011. "Change in income and change in self-rated health: Systematic review of studies using repeated measures to control for confounding bias," Social Science & Medicine, Elsevier, vol. 72(2), pages 193-201, January.
    4. repec:ebl:ecbull:v:9:y:2005:i:9:p:1-17 is not listed on IDEAS
    5. Fiel & Fiel (ed.), 2007. "La Desigualdad en la Salud," Books at FIEL, FIEL, edition 1, volume 1, number 1107.
    6. Stefan Boes, 2009. "Bounds on Counterfactual Distributions Under Semi-Monotonicity Constraints," SOI - Working Papers 0920, Socioeconomic Institute - University of Zurich.
    7. David Cantarero & Marta Pascual, 2005. "Socio-Economic Status And Health: Evidence From The Echp," Economics Bulletin, AccessEcon, vol. 9(9), pages 1-17.
    8. Laskowska Iwona, 2012. "Socio-Economic Inequalities in Health - Measurement Problems and the Results of Analyses for Poland," Folia Oeconomica Stetinensia, Sciendo, vol. 10(2), pages 92-102, January.
    9. Alexander Silbersdorff & Julia Lynch & Stephan Klasen & Thomas Kneib, 2017. "Reconsidering the Income-Illness Relationship Using Distributional Regression: An Application to Germany," SOEPpapers on Multidisciplinary Panel Data Research 931, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    Health production; panel data; semiparametric methods; absolute income; relative deprivation;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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