Pulok, Mohammad Habibullah (2012): Revisiting Health and Income Inequality Relationship:Evidence from Developing Countries.
Download (394kB) | Preview
In general, countries with more equal income distribution generally enjoy better health. Earlier empirical studies on the relationship between income distribution and health at country level present strong evidence that income inequality on an average impedes the improvement of population health. However, a majority of these empirical studies are based on data from either only developed countries or pooled data from developing and developed countries. They mainly study the relationship at a single point of time or at an average of several years. These studies also fail to control for country specific unobserved heterogeneity. Departing from the general trend of current literature, this paper examines the health-income inequality hypothesis using panel data from 31 low income and low middle income countries for the period of 1982-2002. The results from the simple pooled OLS analysis indicate that health and income inequality is negatively related in these countries. This finding is in line with the most of the earlier cross country studies. However, application of fixed effects and random effects model to control country specific heterogeneity provides contradictory results. In other words, my findings from this study confirm that there is a positive relation between health and income distribution in this set of developing countries over this period.
|Item Type:||MPRA Paper|
|Original Title:||Revisiting Health and Income Inequality Relationship:Evidence from Developing Countries|
|English Title:||Revisiting Health and Income Inequality Relationship:Evidence from Developing Countries|
|Keywords:||Health; Fixed Effects; Income Inequality; Random Effects|
|Subjects:||I - Health, Education, and Welfare > I0 - General
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O50 - General
|Depositing User:||Mohammad Habibullah Pulok|
|Date Deposited:||02. Jul 2012 05:53|
|Last Modified:||11. Feb 2013 16:56|
Babones, S.J. (2008), “Income inequality and population health: Correlation and causality”, Social Science and Medicine 66(7), 1614-1626.
Baltagi, B.H.and P.X. Wu. (1999), “Unequally Spaced Panel Data Regressions with AR(1) Disturbances”, Econometric Theory, 15(6), 814-823.
Baltagi, Badi H. (2005), Econometric Analysis of Panel Data, Wiley, John & Sons, Chichester .
Baumbusch, Andrew P. (1995), “Income inequality and infant mortality”, Princeton University, Junior independent work, processed
Beckfield, J.(2004), “Does Income Inequality Harm Health? New Cross-National Evidence”, Journal of Health and Social Behavior, 45(3), 231-248.
Breusch, T.S. and Pagan, A.R. (1980), “The Lagrange Multiplier Test and its Applications Model Specification in Econometrics”, Review of Economic Studies, 47, 239-53.
Cameron, A. Colin and Pravin K. Trivedi (2009), Microeconometrics Using Stata , Stata Press, Texas.
De Maio, F.G. (2007), “Income inequality measures”, Journal of Epidemiology and Community Health, 61 (10), 849–852.
De Maio, F.G. (2010), Health and social theory, Palgrave Macmillan, Basingstoke.
Deaton, A. (2003), “Health, inequality, and economic development”, Journal of Economic Literature, 41,113–158.
Deininger, K., and Squire L.(1996), “A New Data Set Measuring Income Inequality”, The World Bank Economic Review, 10, 1996, 565–591.
Dorling, D., Mitchell, R. and Pearce, J. (2007), “The global impact of income inequality on health by age: an observational study”, British Medical Journal , 335(7625) ,873.
Duleep, H.O. (1995), “Mortality and Income Inequality among Economically Developed Countries”, Social Secutiry Bulletin, 58(2), 34–50.
Flegg, A.T.(1982), “Inequality of Income, Illiteracy and Medical-Care as Determinants of Infant-Mortality in Underdeveloped-Countries”, Population Studies—A Journal of Demography, 36(3), 441–58.
Galbraith, J.K.(2009), “Inequality, Unemployment and Growth: New Measures for Old Controversies”, Journal of Economic Inequality, 7, 189–206.
Galbraith, J.K., and Kum , H.(2005), “Estimating the Inequality of Household Incomes: A Statistical Approach to the Creation of a Dense and Consistent Global Data Set”, Review of Income and Wealth, 51, 115–143.
Gimet, C. and Lagoarde–Segot, T. (2011), “A Closer Look at Financial Development and Income Distribution”, Journal of Banking and Finance, 35, 1698–1713.
Gravelle, H. (1998), “How Much of the Relation between Population Mortality and Unequal Distribution of Income is a Statistical Artefact?”, British Medical Journal, 316, 382–385.
Gravelle, H., Wildman, J. and Sutton, M. (2002), “Income, Income Inequality and Health: What Can We Learn from Aggregate Data?” Social Science and Medicine, 54, 577–589.
Greene, W. H. (2008), Econometric Analysis, Prentice Hall, Upper Saddle River, NJ.
Hausman, J. A. (1978), “Specification Tests in Econometrics”. Econometrica, 4(6), 1251-71
Herzer ,D. and Nunnenkam, P. (2011), “Income Inequality and Health: New Evidence from Panel Data”, Kiel Working Papers 1736, Kiel Institute for the World Economy.
Judge, K. (1995), “Income Distribution and Life Expectancy: A Critical Appraisal”, British Medical Journal, 311(7015), 1282–7.
Judge, K., Mulligan J. A. and. Benzeval, M. (1998), “Income Inequality and Population Health”, Social Science and Medicine, 46,567–579.
Leigh, A., and Jencks, C. (2007), “Inequality and Mortality: Long–run Evidence from a Panel of Countries”, Journal of Health Economics, 26, 1–24.
Lynch, J., Smith,G.D., Harper, S., M. Hillemeier, Ross. N. , Kaplan, G.A. and Wolfson, M.(2004), “ Is Income Inequality a Determinant of Population Health? Part 1. A Systematic Review”, The Milbank Quarterly, 82, 5–99.
Mellor, J.M., and Milyo,J. (2001), “Reexamining the Evidence of an Ecological Association between Income Inequality and Health”, Journal of Health Politics, Policy and Law, 26, 487–522.
Mellor, J.M. and Milyo, J. (2002), “Income Inequality and Health Status in the United States: Evidence from the Current Population Survey, The Journal of Human Resources, 37(3), 510-539.
Mellor, J.M. and Milyo, J. (2003), “Is Exposure to Income Inequality a Public Health Concern? Lagged Effects of Income Inequality on Individual and Population Health”, HSR: Health Services Research, 38(1), 137-151.
Meschi, E. and Vivarelli, M. (2009), “Trade and Income Inequality in Developing Countries”, World Development, 37, 287–302.
Pampel, F.C., and Pillai, V.K. (1986), “Patterns and Determinants of Infant Mortality in Developed Nations 1950–1975”, Demography 23(4):525–42.
Preston, S. H. (1975), “The Changing Relation between Mortality and Level of Economic Development”, Population Studies, 29, 231–248.
Rodgers, G. B. (1979), “Income and Inequality as Determinants of mortality: An international Cross-Section Analysis”, International Journal of Epidemiology, 31(3), 533–538.
Shkolnikov, V., Andreev, E.M. , Zhang, Z, Oeppen,J. and Vaupel, J.W. (2011). Losses of expected lifetime in the US and other developed countries: methods and empirical analyses. Demography, 48(1), 211-239
Subbarao, K., and Raney ,L.(1995), “Social Gains from Female Education: A Cross-National Study”, Economic Development and Cultural Change, 44(1), 105–128.
Torre, R. and Myrskylä M. (2011), “Income inequality and mortality: a panel data analysis on 21 developed countries”, MPIDR Working Paper ,2011-007
Wagstaff, A. and van Doorslaer, E. (2000), “Income Inequality and Health: What Does the Literature Tell Us?”Annual Review of Public Health, 21, 543–567.
Waldmann, R.J. (1992), “Income Distribution and Infant Mortality”, Quarterly Journal of Economics, 107, 1283–1302.
Wennemo, I. (1993), “Infant mortality, public policy and inequality: a comparison of 18 industrialised countries 1950-85”, Sociology of Health and Illness, 15(4), 429-446.
Wilkinson, R.G. (1992), “Income Distribution and Life Expectancy”, British Medical Journal, 304, 165–168.
Wilkinson, R.G. (1996), Unhealthy Societies: The Afflictions of Inequality, Routledge, London and New York.
Wilkinson, R. G. (1999). “Two Pathways, but How Much Do They Diverge?”, British Medical Journal 319(7215), 956-957.
Wilkinson, R.G. and Pickett, K.E (2006), “Income inequality and population health: A review and explanation of the evidence”, Social Science and Medicine, 62(7), 1768-1784.
Wilkinson, R.G. and Pickett, K.E. (2009), “Income Inequality and Social Dysfunction”, Annual Review of Sociology, 35(1), 493-511.
Wooldridge, J. M. (2010), Econometric Analysis of Cross Section and Panel Data, MIT Press, Cambridge, MA.