Discussion Paper
No. 2014-45 |
November 12, 2014
Income Inequality and Health: Evidence from Developed and Developing Countries
Abstract
The authors assess the effect of income inequality on life expectancy by performing separate estimations for developed and developing countries. Their 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, they 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.
Comments and Questions