Abstract

The critical role of income in individual health is not only reflected in the direct effect of income but also derived from the relative income levels within cohorts. This study first constructs relative deprivation indicators to measure the relative income levels of rural households by taking village-level households as the reference group. Using the data from the four waves of the China Health and Retirement Longitudinal Study (2011–2018), we apply a panel event study approach to detect the impact of relative deprivation on the health status of rural middle-aged and older adults. The estimation results show the significantly negative and persistent effects of deterioration in relative deprivation on the physical and mental health outcomes of these adults. In rural China, the impact of relative deprivation on individual health shows significant age and wealth differences, but no significant gender differences are observed. Meanwhile, local collective culture plays important roles. The findings have important implications for the government to improve public health policies and promote healthy aging.

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