Does inequality in health impede growth?

Michael Grimm

Research output: Working paperAcademic

Abstract

This paper investigates the effects of inequality in health on economic growth in low and middle income countries.? The empirical part of the paper uses an original cross-national panel data set covering 62 low and middle income countries over the period 1985 to 2007. I find a substantial and relatively robust negative effect of health inequality on income levels and income growth controlling for life expectancy, country and time fixed-effects and a large number of other effects that have been shown to matter for growth. The effect also holds if health inequality is instrumented to circumvent a potential problem of reverse causality. Hence, increasing access to health care for the poor can make a substantial contribution to economic growth not only through its effect on life expectancy but also through its effect on reduced health inequality.
Original languageEnglish
Place of PublicationThe Hague
PublisherInternational Institute of Social Studies (ISS)
Number of pages28
Publication statusPublished - 2010

Publication series

SeriesISS working papers. General series
Volume501

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