Determinants of life expectancy: evidence from World Bank income groups using a panel dummy interaction approach

Achieving optimal health outcomes is central to global health policies. This study examines the impact of out-of-pocket (OOP) health expenditures and other determinants on life expectancy across income groups classified by the World Bank.

Using panel data and a fixed-effects model with dummy interactions, the findings reveal that OOP expenditures reduce life expectancy more in low-income economies, underscoring the need to lower financial barriers to healthcare.

Gross domestic product (GDP) per capita is significant for improving life expectancy more in low-income economies, but diminishing returns suggest aligning growth with health policies. Immunization consistently improves life expectancy, highlighting preventive care's importance. Unemployment limits healthcare access, particularly in low-middle-income economies, requiring policies to address economic instability. Alcohol consumption adversely affects life expectancy in high-income economies, highlighting the impact of lifestyle changes and the need for regulatory interventions.

By exploring the interplay of health expenditures, socioeconomic factors and lifestyle risks, the study offers insights for equitable global health policies aimed at improving health outcomes across income groups.

(1) While previous studies have analysed the impact of various socio-economic factors on life expectancy in developed economies, little is known about the impact of these factors in Low and Middle Income Economies. (2) Moreover, the impact of out-of-pocket health expenditure on life expectancy has not been comprehensively analysed across different income groups. (3) Findings reveal that out-of-pocket expenditures negatively affect life expectancy more in low-income economies than in high-income economies, emphasizing the need for reducing the financial burden to improve healthcare access. (4) Alcohol consumption adversely impacts life expectancy in high-income economies, highlighting the need for regulatory interventions targeting lifestyle-related risks. (5) This study enhances understanding of how health expenditures, socio-economic factors, and lifestyle choices influence life expectancy across income groups, offering insights to guide equitable global health policies.