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Health, income and relative deprivation: Evidence from the BHPS

Lookup NU author(s): Professor John WildmanORCiD


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It is believed that income affects health directly but it is argued that indirect income effects due to relative deprivation may be equally important. This paper investigates these relationships using parametric and semiparametric panel data models which ameliorate problems of misspecification and unobservable heterogeneity. By allowing for a flexible functional form of income we ensure that coefficients on relative deprivation variables are not an artefact of a highly non-linear relationship between health and income. The results provide strong evidence for the impact of income on self-reported measures of health for men and women. These results are robust across a range of techniques and are resilient to the inclusion of measures of relative deprivation. The parametric results for relative deprivation largely reject its influence on health, although there is some evidence of an effect in the semiparametric models. © 2007 Elsevier B.V. All rights reserved.

Publication metadata

Author(s): Jones AM, Wildman J

Publication type: Article

Publication status: Published

Journal: Journal of Health Economics

Year: 2008

Volume: 27

Issue: 2

Pages: 308-324

ISSN (print): 0167-6296

ISSN (electronic):

Publisher: Elsevier BV


DOI: 10.1016/j.jhealeco.2007.05.007

PubMed id: 18207266


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