Cristina Blanco (Universitat Autònoma de Barcelona)
Abstract
Given the lack of consensus in the literature regarding the effect of income inequality on health, this paper studies the relationship between both variables, focusing on the relative income hypotheses. Using data of the German Socio-Economic Panel (SOEP), we analyse the effect of relative deprivation on individual self-assessed health, when considering "upwards" and "downwards" income comparisons within the reference group. We also control for the existence of feedbacks effects between income and health in a dynamic qualitative response model.