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Income inequality and health: Evidence from developed and developing countries

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  • Herzer, Dierk
  • Nunnenkamp, Peter

Abstract

We assess the effect of income inequality on life expectancy by performing separate estimations for developed and developing countries. Our empirical analysis challenges the widely held view that inequality matters more for health in richer countries than for health in poorer countries. Employing panel cointegration and conventional panel regressions, we find that income inequality slightly increases life expectancy in developed countries. By contrast, the effect on life expectancy is significantly negative in developing countries. Even though the quantitative effects are small, the contrast between the two country groups proves to be robust to modifications in measurement, specification and methodological choices.

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  • Herzer, Dierk & Nunnenkamp, Peter, 2015. "Income inequality and health: Evidence from developed and developing countries," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-56.
    • Handle: RePEc:zbw:ifweej:20154
    DOI: 10.5018/economics-ejournal.ja.2015-4
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    5. Dierk Herzer, 2017. "The Long-run Relationship Between Trade and Population Health: Evidence from Five Decades," The World Economy, Wiley Blackwell, vol. 40(2), pages 462-487, February.
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    9. Zhiheng Chen & Yuting Ma & Junyi Hua & Yuanhong Wang & Hongpeng Guo, 2021. "Impacts from Economic Development and Environmental Factors on Life Expectancy: A Comparative Study Based on Data from Both Developed and Developing Countries from 2004 to 2016," IJERPH, MDPI, vol. 18(16), pages 1-18, August.
    10. Gheorghița Dincă & Camelia Negri & Mariana Cassiana Ioniță, 2020. "The Impact Of Income Inequality On Mortality In The European Union," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(48), pages 5-17, December.
    11. Tonmoy Chatterjee & Ghirmai Tesfamariam Teame & Sharmi Sen, 2024. "Impact of income inequality on health and education in Africa: the long-run role of public spending with short-run dynamics," Journal of Computational Social Science, Springer, vol. 7(1), pages 259-304, April.
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    13. Dierk Herzer, 2016. "Unions and Income Inequality: A Heterogeneous Panel Co-integration and Causality Analysis," LABOUR, CEIS, vol. 30(3), pages 318-346, September.
    14. Tonmoy Chatterjee & Nilendu Chatterjee, 2022. "Does Innovation Make Nations More Healthy? Evidence from Developing and Developed Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 3296-3325, December.
    15. Kangmennaang, Joseph & Smale, Bryan & Elliott, Susan J., 2019. "‘When you think your neighbour's cooking pot is better than yours’: A mixed-methods exploration of inequality and wellbeing in Ghana," Social Science & Medicine, Elsevier, vol. 242(C).
    16. Rebeira, Mayvis & Grootendorst, Paul & Coyte, Peter C. & Aguirregabiria, Victor, 2017. "Does rising income inequality affect mortality rates in advanced economies?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-23.
    17. Chatterjee, Tonmoy & Dinda, Soumyananda & Chatterjee, Nilendu & Teame, Ghirmai Tesfamariam, 2024. "Trade Liberalization’s Influence on Health Status in Developing Economies: Theoretical Insights and Real-World Implications," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 49(3), pages 1-31, September.
    18. Boachie, Micheal Kofi, 2015. "Effect of health on economic growth in Ghana:An application of ARDL bounds test to cointegration," MPRA Paper 67201, University Library of Munich, Germany.
    19. Nisar Ahmad & Moodhi Raid & Jumah Alzyadat & Hisham Alhawal, 2023. "Impact of urbanization and income inequality on life expectancy of male and female in South Asian countries: a moderating role of health expenditures," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.

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    More about this item

    Keywords

    Health; inequality; panel cointegration;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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