Income Inequality and Population Health: Regional Differences and New Evidence

Abstract

This paper analyzes the link between income inequality and the health of the population. To do so I use both a cross-sectional and panel data econometric approach to look at the impact from income inequality, both globally as well as separated by region and income group as defined by the World Bank. The empirical analysis shows that there is a negative, statistically significant relationship between the Gini-index and health indicators when looking at the entire sample. This result is not robust to the introduction of variables which control for social infrastructure. However, the income inequality effect can be observed even when control variables are used in areas where the effect is particularly strong, Central & South America, as well as those countries that have an upper-middle level of income. These results point towards income inequality’s relationship with the level of social infrastructure in a country being the largest driver of the link between income inequality and health.