Several studies have shown that, at least in terms of health status, the distribution of income may be more important than its absolute level. In these studies, inequality in the income distribution is used as a proxy for relative deprivation in a society and is measured through application of inequality indices, such as the Atkinson Index. In this paper we test for the effects of relative deprivation using Canadian data in an attempt to determine whether this effect persists in a country with a national health insurance system. This paper also argues that at the aggregate level, inequality indices are not sensitive enough to distinguish between the effects of relative as opposed to absolute income even when controlling for average income and the poverty level. An alternative approach is proposed that uses disaggregated income to distinguish between the effects of changes in relative and absolute income levels. Income distribution data from Statistics Canada and mortality figures from the Canadian Institute for Health Information over the period 1980 - 1997 are analyzed using regression techniques. Other variables which health capital theory predicts will be related to mortality, such as the price of cigarettes, are included as a test of the applicability of the Grossman health capital model at the aggregate level.
Learning Objectives: At the conclusion of this session the participant will be able to analyze and evaluate studies which use ecological data to investigate the relation between mortality and income inequality
Keywords: Economic Analysis, Mortality
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.