Effect of Inequality of Income Distribution on Health Status in Select Countries Using Panel Data Analysis Over the 1995 to 2008 Period

Income is the key factor contributing to citizens’ health status. Research has confirmed the universal correlation between low income and poor health conditions. Thus, the present study was conducted to investigate the effect of inequality of income distribution on health status in Iran and a few select countries using panel data analysis over the 1995 to 2008 period. Materials and methods: the study adopted a descriptive-analytical method. The sample consisted of a number of 22 developing countries including Iran. The data was collected from research articles, books and the Internet. Eviews7 software was used to analyze the data using panel method. Results: as a criterion to measure the inequality of income distribution in Iran and other developing countries, Gini coefficient was found to have an adverse effect on life expectancy. However, it had a positive effect on child mortality rate and total fertility rate. As control variables, income per capita and human resource training had a significant positive effect on life expectancy; however, they had a significant negative correlation with child mortality rate. A significant negative correlation was also observed between human resource training and total fertility rate. Discussion: over the studied period, increased inequality of income distribution in the select developing countries resulted in decreased life expectancy but increased child mortality and total fertility rates. Therefore, policy-makers may develop conscious economic policies in order to reduce inequality of income distribution, which may in turn improve citizens’ health status.