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Contents

17.1. Introduction 1420

17.1.1 HealthtoIncome 1422

17.1.2 IncomeandIncomeInequalitytoHealth 1423

17.1.3 ScopeoftheChapter 1423

17.1.4 OrganizationoftheChapter 1424

17.2.

Health and Income: A First Pass 1425

17.3. HealthDeterminationofEconomicInequality 1436

17.3.1 Overview 1436

17.3.2 HealthandWages 1437

17.3.2.1 Productivity 1437

17.3.2.2 Discrimination 1439

17.3.2.3 NonwageCostsandNonpecuniaryBenefits 1441

17.3.2.4 Evidence 1442

17.3.3 Health and Work 1447

17.3.3.1 Incapacity and Involuntary Unemployment 1448

17.3.3.2 Disability Insurance 1449

17.3.3.3 Preferences 1451

17.3.3.4 Life Expectancy 1452

17.3.3.5 Evidence 1453

17.3.4 Early-Life Health Determinants of Later-Life Economic Inequality 1459

17.3.4.1 Health, Cognitive, and Noncognitive Capabilities 1460

17.3.4.2 Education 1462

17.3.4.3 Fetal Origins Hypothesis 1465

17.3.4.4 Economic Consequences of Early-Life Ill-Health 1466

17.3.5 HealthandOccupation 1468

17.3.6 Health and Household Income 1470

17.3.7 Health and Wealth 1471

17.3.8 Summary 1473

17.4. EconomicDeterminationofHealthInequality 1476

17.4.1 Overview 1476

17.4.2 Income and Wealth Effects on Adult Health 1478

17.4.2.1 CausalityTests 1478

17.4.2.2 CausalEffects 1482

17.4.3 Income and Wealth Effects on Health Behavior 1489

Handbook of Income Distribution, Volume 2B

© 2015 Elsevier B.V.

All rights reserved. 1419

ISSN 1574-0056, http://dx.doi.org/10.1016/B978-0-444-59429-7.00018-2

17.4.4 IncomeEffectsonMedicalCare 1491

17.4.5 Income Effects on Child Health 1492

17.4.5.1 EvidencefromHigh-IncomeCountries 1492

17.4.5.2 Evidence from Low-and Middle-Income Countries 1496

17.4.6 Conclusion 1498

17.5. Economic Inequality as a Determinant of Health 1499

17.5.1 Overview 1499

17.5.2 Basic Hypothesis: Inequality Threatens Everyone's Health 1500

17.5.3 Alternative Hypotheses: Health Responds to Absolute or Relative Income 1502

17.5.4 Evidence 1504

17.5.4.1 EmpiricalChallenges 1504

17.5.4.2 Income Inequality Hypothesis 1505

17.5.4.3 Relative Hypotheses 1512

17.5.5 Conclusion 1512

17.6. Conclusion 1513

Acknowledgments 1516

Appendix 1516

Data Sources 1520

References 1520

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Source: Atkinson Anthony, Bourguignon François. Handbook of Income Distribution. Volume 2B. North Holland, 2014. — 2366 p..
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