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, reducing inequality in the access to health care and to health-related information can make a substantial contribution to economic growth.

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Persistent URL dx.doi.org/10.1093/oep/gpr002, hdl.handle.net/1765/31435
Citation
Grimm, M. (2011). Does inequality in health impede economic growth?. Oxford Economic Papers, 63(3), 448–474. doi:10.1093/oep/gpr002