The Dynamics of Income-Related Health Inequality Among US Children

Abstract

We estimate and decompose family income-related inequality in child health in the US and analyze its dynamics using the income-related health mobility index recently introduced by Allanson et al., 2010. Data come from the 1997, 2002, and 2007 waves of the Child Development Supplement (CDS) of the Panel Study of Income Dynamics (PSID). The findings show that family income-related child health inequality remains stable from early childhood into adolescence. The main factor underlying income-related child health inequality is family income itself, although other factors, such as maternal education, also play a role. Decomposition of income-related health mobility indicates that health changes over time are more favorable to children with lower initial family incomes vs. children with higher initial family incomes. However, offsetting this effect, our findings also suggest that as children grow up, changes in family income ranking over time are related to children’s subsequent health status.

Keywords: inequality, child health, income-related health inequality, income-related health mobility, health inequality

JEL Classification: I100, I120, I190