White Rose University Consortium logo
University of Leeds logo University of Sheffield logo York University logo

Income, relative income, and self-reported health in Britain 1979-2000

Gravelle, H. and Sutton, M. (2006) Income, relative income, and self-reported health in Britain 1979-2000. Research Report. CHE Research Paper (10). Centre for Health Economics , York, UK.

Full text not available from this repository.

Abstract

According to the relative income hypothesis, an individual’s health depends on the distribution of income in a reference group, as well as on the income of the individual. We use data on 231,208 individuals in Great Britain from 19 rounds of the General Household Survey between 1979 and 2000 to test alternative specifications of the hypothesis with different measures of relative income, national and regional reference groups, and two measures of self assessed health. All models include individual education, social class, housing tenure, age, gender and income. The estimated effects of relative income measures are usually weaker with regional reference groups and in models with time trends. There is little evidence for an independent effect of the Gini coefficient once time trends are allowed for. Deprivation relative to mean income and the Hey-Lambert-Yitzhaki measures of relative deprivation are generally negatively associated with individual health, though most such models do not perform better on the Bayesian Information Criterion than models without relative income. The only model which performs better than the model without relative income and which has a positive estimated effect of absolute income on health has relative deprivation measured as income proportional to mean income. In this model the increase in the probability of good health from a ceteris paribus reduction in relative deprivation from the upper quartile to zero is 0.010, whereas as an increase in income from the lower to the upper quartile increases the probability by 0.056. Measures of relative deprivation constructed by comparing individual income with incomes within a regional or national reference group will always be highly correlated with individual income, making identification of the separate effects of income and relative deprivation problematic.

Item Type: Monograph (Research Report)
Copyright, Publisher and Additional Information: © 2006 Hugh Gravelle, Matt Sutton. The full text of this report can be viewed free of charge from the Centre for Health Economics web site at: http://www.york.ac.uk/inst/che/pdf/rp10.pdf
Keywords: relative income, relative deprivation, income inequality, health
Institution: The University of York
Academic Units: The University of York > Centre for Health Economics (York)
Depositing User: Repository Officer
Date Deposited: 24 Apr 2006
Last Modified: 04 Oct 2010 17:08
Published Version: http://www.york.ac.uk/inst/che/pdf/rp10.pdf
Status: Published
Publisher: Centre for Health Economics
Refereed: No
Related URLs:
URI: http://eprints.whiterose.ac.uk/id/eprint/1183

Actions (repository staff only: login required)