Journal Article

Income Inequality and Health: Evidence from Developed and Developing Countries

Authors

  • Dierk Herzer
  • Peter Nunnenkamp
Publication Date

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.

Info

JEL Classification
C23, I14
DOI
10.5018/economics-ejournal.ja.2015-4

Key Words

  • health
  • inequality
  • panel cointegration