Income Inequality and Health: Lessons from a Residential Assignment Program

Hans Grönqvist, Per Johansson () and Susan Niknami

No 2011017, Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London

Abstract: This paper investigates how income inequality affects health. Although a large literature has shown that inhabitants in areas with greater income inequality suffer from worse health, past studies are severely plagued by inadequate data, non-random residential sorting and reverse causality. We address these problems using longitudinal population hospitalization data coupled with a settlement policy where Swedish authorities distributed newly arrived refugee immigrants to their initial area of residence. The policy was implemented in a way that provides a source of plausibly random variation in initial location. Our empirical analysis reveals no statistically significant effect of income inequality on the probability of being hospitalized. This finding holds also when investigating subgroups more vulnerable to negative health influences and when studying different types of diseases. There is however some indications of a detrimental effect on older persons’ health; but the magnitude of the effect is small. Our estimates are precise enough to rule out large effects of income inequality on health.

Keywords: Income inequality; Immigration; Quasi-experiment (search for similar items in EconPapers)
JEL-codes: I10 J15 (search for similar items in EconPapers)
Date: 2011-10
New Economics Papers: this item is included in nep-hea, nep-ltv, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nor:wpaper:2011017

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