Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81498 
Year of Publication: 
2012
Series/Report no.: 
IFN Working Paper No. 899
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
We use individual and multi-level data from Zambia on child nutritional health to test the absolute income hypothesis (AIH), the relative income hypothesis (RIH) and the income inequality hypothesis (IIH). The results confirm a non-linear positive relation between economic resources and health, confirming the AIH. For the RIH we find sensitivity to what reference group is used. Most interestingly, while the IIH predicts that income inequality, independent from individual income, will affect health negatively, we find higher income inequality to robustly associate with better child health. The results suggest that the relationship between inequality and health in developing contexts might be very different from the predominant view in the existing literature mainly based on developed countries, and that alternative mechanisms might mediate the relationship in poor countries.
Subjects: 
Health
Economic inequality
Zambia
JEL: 
D31
I10
I12
O10
Document Type: 
Working Paper

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