Discussion Paper Details

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Title: Health Care Quality and Economic Inequality

Author(s): Tullio Jappelli, Luigi Pistaferri and Guglielmo Weber

Publication Date: August 2004

Keyword(s): health care, Income inequality and precautionary saving

Programme Area(s): International Macroeconomics

Abstract: We argue that health care quality has an important impact on economic inequality and on saving behaviour. We exploit district-wide variability in health care quality provided by the Italian universal public health system to identify the effect of quality on income inequality, health inequality and precautionary saving. We find that in lower quality districts there is greater income and health dispersion and higher precautionary saving. The analysis carries important insights for the ongoing debate about the validity of the life-cycle model and interesting policy implications for the design of health care systems.

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Bibliographic Reference

Jappelli, T, Pistaferri, L and Weber, G. 2004. 'Health Care Quality and Economic Inequality'. London, Centre for Economic Policy Research.