Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/98418 
Year of Publication: 
2014
Series/Report no.: 
Diskussionspapier No. 141
Publisher: 
Helmut-Schmidt-Universität - Universität der Bundeswehr Hamburg, Fächergruppe Volkswirtschaftslehre, Hamburg
Abstract: 
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.
Subjects: 
health
inequality
panel cointegration
JEL: 
I14
C23
Document Type: 
Working Paper

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