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Does rising income inequality affect mortality rates in advanced economies?

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  • Rebeira, Mayvis
  • Grootendorst, Paul V.
  • Coyte, Peter C.
  • Aguirregabiria, Victor

Abstract

What effect does rising income inequality have on mortality rates in developed countries? In particular, does the rise of the super-wealthy or the top 0.01% of the population effect overall health of the population? This paper focuses on the effect of rising income inequality on mortality rates of men and women in a subset of OECD countries over six decades from 1950-2008. The authors used adult mortality as the outcome measure and the inverted Pareto-Lorenz coefficient as the preferred measure of income inequality and obtained the latest and precise data on the income inequality measure. They used a panel co-integration econometric framework to address some of the challenges posed by more conventional methods. The findings show that for industrialized countries with co-integrated series, income inequality appears to have a long-run significant negative effect on mortality risk for both men and women, that is, an increase in income inequality does not appear to lower annualized adult mortality rates.

Suggested Citation

  • Rebeira, Mayvis & Grootendorst, Paul V. & Coyte, Peter C. & Aguirregabiria, Victor, 2017. "Does rising income inequality affect mortality rates in advanced economies?," Economics Discussion Papers 2017-12, Kiel Institute for the World Economy (IfW Kiel).
  • Handle: RePEc:zbw:ifwedp:201712
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    Cited by:

    1. Ademola Obafemi Young, 2019. "Growth Impacts of Income Inequality: Empirical Evidence From Nigeria," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 226-262, December.

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    More about this item

    Keywords

    income inequality; mortality; health; panel co-integration;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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