Health, Income and Local Comparisons: a Study of the Relative Income Hypothesis in South Africa
(2015) NEKN01 20151Department of Economics
- Abstract
- This study investigates the relationship between income and health of individuals in South Africa. In particular it tests whether the relative, rather than just the absolute, income of the individual plays a significant part in determining health outcomes. The absolute income hypothesis (AIH) is tested and, in line with previous related research, found significant, so that individuals with higher income are associated with better health. The Relative Income Hypothesis (RIH) is then tested through the added inclusion of a term for the individual’s relative income in his or her community.
The study uses Self-Assessed Health (SAH) from a nationally representative sample to determine individual health. It uses two different types of... (More) - This study investigates the relationship between income and health of individuals in South Africa. In particular it tests whether the relative, rather than just the absolute, income of the individual plays a significant part in determining health outcomes. The absolute income hypothesis (AIH) is tested and, in line with previous related research, found significant, so that individuals with higher income are associated with better health. The Relative Income Hypothesis (RIH) is then tested through the added inclusion of a term for the individual’s relative income in his or her community.
The study uses Self-Assessed Health (SAH) from a nationally representative sample to determine individual health. It uses two different types of measures for relative income, one objective based upon reported income and one subjective based upon the individual’s perception of how the own income relates to the income of others. The role of knowledge and groups for comparison available to the individual is thoroughly discussed. The Relative Income Hypothesis (RIH) is also separately tested for different income groups as well as across time, since both past and predicted future income may be influential in determining current health.
The study finds that whether relative income helps explaining individual health strongly depends on the measure used for relative income. In particular whether relative income is defined in objective or subjective terms is found to be crucial. The results based on objective income finds no support for the Relative Income Hypothesis whereas support is found when subjective income is used. This suggest the importance of psychological factors in explaining the relationship between income and health. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/7792816
- author
- Wästlund, David LU and Wallin Bernhardsson, Niklas LU
- supervisor
-
- Ulf Gerdtham LU
- organization
- course
- NEKN01 20151
- year
- 2015
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Relative Income Hypothesis, Self-Assessed Health, Absolute Income Hypothesis, South African Health
- language
- English
- id
- 7792816
- date added to LUP
- 2015-09-03 13:25:00
- date last changed
- 2015-09-03 13:25:00
@misc{7792816,
abstract = {{This study investigates the relationship between income and health of individuals in South Africa. In particular it tests whether the relative, rather than just the absolute, income of the individual plays a significant part in determining health outcomes. The absolute income hypothesis (AIH) is tested and, in line with previous related research, found significant, so that individuals with higher income are associated with better health. The Relative Income Hypothesis (RIH) is then tested through the added inclusion of a term for the individual’s relative income in his or her community.
The study uses Self-Assessed Health (SAH) from a nationally representative sample to determine individual health. It uses two different types of measures for relative income, one objective based upon reported income and one subjective based upon the individual’s perception of how the own income relates to the income of others. The role of knowledge and groups for comparison available to the individual is thoroughly discussed. The Relative Income Hypothesis (RIH) is also separately tested for different income groups as well as across time, since both past and predicted future income may be influential in determining current health.
The study finds that whether relative income helps explaining individual health strongly depends on the measure used for relative income. In particular whether relative income is defined in objective or subjective terms is found to be crucial. The results based on objective income finds no support for the Relative Income Hypothesis whereas support is found when subjective income is used. This suggest the importance of psychological factors in explaining the relationship between income and health.}},
author = {{Wästlund, David and Wallin Bernhardsson, Niklas}},
language = {{eng}},
note = {{Student Paper}},
title = {{Health, Income and Local Comparisons: a Study of the Relative Income Hypothesis in South Africa}},
year = {{2015}},
}