Scandinavian Working Papers in Economics

Working Paper Series,
Stockholm University, Swedish Institute for Social Research

No 4/2012: Income Inequality and Health: Lessons from a Refugee Residential Assignment Program

Hans Grönqvist (), Per Johansson () and Susan Niknami ()
Additional contact information
Hans Grönqvist: Swedish Institute for Social Research, Stockholm University, Postal: SE-106 91 Stockholm, Sweden
Per Johansson: IFAU, Uppsala University
Susan Niknami: Swedish Institute for Social Research, Stockholm University, Postal: SE-106 91 Stockholm, Sweden

Abstract: This paper examines the effect of income inequality on health for a group of particularly disadvantaged individuals: refugees. Our analysis draws on longitudinal hospitalization records coupled with a settlement policy where Swedish authorities assigned newly arrived refugees to their first area of residence. The policy was implemented in a way that provides a source of plausibly random variation in initial location. The results reveal no statistically significant effect of income inequality on the risk of being hospitalized. This finding holds also for most population subgroups and when separating between different types of diagnoses. Our estimates are precise enough to rule out large effects of income inequality on health.

Keywords: Income inequality; Immigration; Quasi-experiment

JEL-codes: I10; J15

42 pages, February 14, 2012

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