The socioeconomic gradient in health: how important is material deprivation?

In this paper we use the Spanish Living Conditions Survey (2005–2008)\r\nto investigate the existence of a socioeconomic gradient in health when alternative measures of socioeconomic status, apart from income, are considered. In particular we construct a material deprivation index that reflects minimum standards of quality\r\nof life and that incorporates comparison effects with societal peers and we estimate\r\nhealth equations with probit adapted least squares, fixed effects and instrumental\r\nvariables. Our results reveal that the relationship between health and income op-\r\nerates through comparison information with respect to societal peers. In contrast,material deprivation in terms of financial difficulties, basic necessities and housing\r\nconditions exerts a direct effect on individual health. Mixed evidence is found with respect to gender.