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Does Health Matter for Inequality in Transition Countries: The Case of Ukraine

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Name of the Asset | Does Health Matter for Inequality in Transition Countries: The Case of Ukraine
Type of Asset | Working Paper
Authors | Tamara Podvysotskaya (Bureau of Economic and Social Technologies, BEST, Kyiv, Ukraine), Elena Osinkina (Department of Finance, National University ‘Kyiv-Mohyla Academy’, Kyiv, Ukraine), Larysa Krasnikova (Department of Finance, National University ‘Kyiv-Mohyla Academy’, Kyiv, Ukraine), Yuriy Podvysotskiy (Department of Finance, National University ‘Kyiv-Mohyla Academy’, Kyiv, Ukraine)
 
Date | December 2011
Country and/or Region | Ukraine
 

Summary

The beginning of the transition processes in Ukraine and other CIS countries was marked by significant economic slowdown and a sharp decline in all health measures. The lack of public finance led to permanent underfunding of the health care sector, the growth of out-of-pocket payments and decreased access to medical services for the most vulnerable population groups. This contributed to the growth of inequality.

This study is an empirical analysis of the influence of health on income inequality and poverty in Ukraine. Health had a significant impact at both micro and macro levels. According to macro-level results, a 1% increase in life expectancy leads to a 2.1% decrease in income inequality as measured by the Gini coefficient. This is further supported by the micro analysis.

The findings are consistent with previous international studies on health-income inequality causality. It expands current debates about health-income inequality association by considering different aspects of health in the income equation in Ukraine. Future empirical investigations should factor in these considerations.

Name of the Program | Working Paper - Part of the Research Conducted Between The Vienna Institute for International Economic Studies (wiiw) and the Global Development Network
Funder(s) |  The Jubiläumsfonds of the Austrian National Bank (OeNB) and the Austrian Ministry of Finance
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