Income Distribution and Health Status: Econometric Evidence from OECD Countries

Abstract

This research note, using a cross-sectional sample consisting of 27 Organization for Economic Co-operation and Development countries (OECD) for the reference year 2002, empirically examines the relationship between health status as measured by infant mortality and the degree of income inequality, given the effect of certain controlled variables. The empirical findings based on the estimation by robust econometric methods, show that in these countries, per capita real gross domestic product, the number of doctors, the level of education, percentage of female smokers in the adult population and income inequality, as reflected by the percentage of the income received by the lowest tenth of the population do impact the level of health status. The results clearly indicate that income inequality affects the level of health status adversely. Policy implications of the research findings are discussed in the research.