Income Inequality and Population Health: Evidence from Panel Data Analysis

The relationship between population health and income inequality has attracted much attention during the last two decades. But the question on which there is no consensus is that whether fluctuations in economic inequality would lead to changes in population health indices.

In response to this question, life expectancy and mortality rate as health indicators and Gini coefficient of inequality were used. A cross sectional data was used to survey the relationship between income inequality and population health over a period of 12 years (1995-2007) in 125 countries.

There was no significant relationship between inequality and population health when panel data method was used and the heterogeneity and unobservable differences among countries in the form of fixed effects were considered,

An income increase would enhance life expectancy and decrease mortality rate. Contrary to the findings of many studies using time series data, it appears that there is no significant relationship between inequality and health indicators.