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Relative income, race, and mortality
Douglas L Miller1, Christina Paxson
1Department of Economics, University of California at Davis, One Shields Avenue, Davis, CA 95616-8578, United States. dlmiller@ucdavis.edu <dlmiller@ucdavis.edu>
Journal of Health Economics
|April 4, 2006
Summary
This study found that having wealthier neighbors, contrary to some theories, does not increase mortality risk. In fact, for some groups, like working-aged Black men, it is associated with lower mortality rates.
Area of Science:
- Socioeconomic Determinants of Health
- Public Health Research
- Epidemiology
Background:
- Recent literature suggests relative income, not just absolute income, impacts health outcomes.
- The hypothesis is that lower relative income within a reference group correlates with poorer health.
- This study investigates the link between neighborhood income and individual mortality risk.
Purpose of the Study:
- To empirically model the relationship between an individual's health, their own income, and the income of their geographical reference group.
- To estimate this model using semi-aggregated mortality data.
- To determine if relative income influences mortality rates.
Main Methods:
- Developed an empirical model linking individual health to own income and neighborhood income.
- Utilized semi-aggregated mortality data from the 1980 and 1990 Compressed Mortality Files.
- Merged mortality data with 1980 and 1990 US Census 5% Public Use sample income data.
Main Results:
- No evidence found that wealthier neighbors increase mortality risk when individual income is held constant.
- Found that for certain groups, particularly working-aged Black males, wealthier neighbors are associated with lower mortality.
- Quantified a significant beneficial effect on mortality for younger Black men (25-64) from increased neighborhood income.
Conclusions:
- The impact of relative income on mortality is complex and group-specific.
- Findings challenge the notion that social comparison of income universally harms health.
- Relative income may confer protective health benefits for specific demographic groups.
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