Absolute Income, Relative Income, Income Inequality, and Mortality

Abstract

We test whether mortality is related to individual income, mean community income, and community income inequality, controlling for initial health status and personal characteristics. The analysis is based on a random sample from the adult Swedish population of more than 40,000 individuals who were followed up for 10–17 years. We find that mortality decreases significantly as individual income increases. For mean community income and community income inequality we cannot, however, reject the null hypothesis of no effect on mortality. This result is stable with respect to a number of measurement and specification issues explored in an extensive sensitivity analysis.