Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2006-12-12 Number: 06-108/3 Author-Name: Tom Van Ourti Author-Email: vanourti@few.eur.nl Author-Workplace-Name: Erasmus Universiteit Rotterdam Author-Name: Eddy Van Doorslaer Author-Email: vandoorslaer@few.eur.nl Author-Workplace-Name: Erasmus Universiteit Rotterdam Author-Name: Xander Koolman Author-Workplace-Name: Erasmus Universiteit Rotterdam Title: The Effect of Growth and Inequality in Incomes on Health Inequality: Theory and Empirical Evidence from the European Panel Abstract: Europe aims at combining income growth with improvements in social cohesion as measured by income and health inequalities. We show that, theoretically, both aims can be reconciled only under very specific conditions concerning the type of growth and the income responsiveness of health. We investigate whether these conditions held in Europe in the nineties using panel data from the European Community Household Panel surveys. We use pooled interval regressions and inequality decompositions to demonstrate that (i) in all countries except Austria, the income elasticity of health is positive and increases with income, and (ii) that income growth was not pro-rich in most EU countries, resulting in little or no reductions in income inequality and modest increases in income-related health inequality in the majority of countries.Keywords:income inequality, health inequality, income elasticity of health, Europe.Classification-JEL: D30, D31, I10, I12. Classification-JEL: D30; D31; I10; I12 Keywords: income inequality; health inequality; income elasticity of health; Europe File-Url: https://papers.tinbergen.nl/06108.pdf File-Format: application/pdf File-Size: 541101 bytes Handle: RePEc:tin:wpaper:20060108