Arbeitspapier

Income inequality and health: New evidence from panel data

This paper argues that previous cross-country (panel) studies on the relationship between income inequality and health suffer from significant biases due to (i) omitted country-specific factors, (ii) endogeneity, and (iii) cross-country heterogeneity in the impact of inequality on health. Using panel cointegration techniques that are robust to omitted variables, endogenous regressors, and slope heterogeneity, we find that income inequality has, on average, a small, but robust and statistically significant positive impact on population health. Also, there is some evidence that inequality is endogenous in the sense that poor health leads to increased income inequality. Finally, we find that there are large cross-country differences in the effect of income inequality on health (in about 35 percent of the cases, the effect is negative).

Sprache
Englisch

Erschienen in
Series: Kiel Working Paper ; No. 1736

Klassifikation
Wirtschaft
Health and Inequality
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Thema
health
inequality
panel cointegration

Ereignis
Geistige Schöpfung
(wer)
Herzer, Dierk
Nunnenkamp, Peter
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2011

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Herzer, Dierk
  • Nunnenkamp, Peter
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2011

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