Income inequality and health: Evidence from developed and developing countries

Dierk Herzer and Peter Nunnenkamp

No 2014-45, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

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 increases life expectancy in developed countries. By contrast, the effect on life expectancy is significantly negative in developing countries. While the quantitative effects are small, the striking contrast between the two country groups proves to be robust to modifications in measurement, specification and methodological choices.

Keywords: Health; Inequality; Panel cointegration (search for similar items in EconPapers)
JEL-codes: C23 I14 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-hea and nep-ltv
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Income inequality and health: Evidence from developed and developing countries (2015)
Working Paper: Income Inequality and Health: Evidence from Developed and Developing Countries (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201445

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