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Socioeconomic Gradient in Health: How Important is Material Deprivation?

Maite Blázquez Cuesta (), Elena Cottini () and Ainhoa Herrarte Sánchez ()

No 2012/07, Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History)

Abstract: 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.

Keywords: Material deprivation; Mundlak correction; random effects model; self-assessed health. (search for similar items in EconPapers)
JEL-codes: C23 D63 I10 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2012-03
New Economics Papers: this item is included in nep-hea
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Journal Article: The socioeconomic gradient in health: how important is material deprivation? (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:uam:wpaper:201207

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