The Effect of Income Distribution on life expectancy and under-5 mortality rate in Iran

Health can affects human abilities, functions and even his life quality, and hence has important role in determination of human capital through production processes. The aim of this study is to examine the effect of income inequality on selected health indices in Iran during 1976-2007. In this study an attempt has been made to analyze the relationship between income inequality and the both of life expectancy and under 5 mortality rate (per 1000 live birth), by using the co-integration method of Johansen- Juselius. Empirical results show that, there is a long-run convergent relationship between above mentioned variables. Furthermore, results show that income inequality has negative effect on health. Therefore, it is concluded that, equally distribution of income could improve national health status in Iran.