Research on the heterogeneous effects of residents’ income on mental health

Abstract

The influence of residents’ income on mental health is complex, and there are heterogeneous effects of residents’ income on different types of mental health. Based on the annual panel data of 55 countries from 2007 to 2019, this paper divides residents’ income into three dimensions: absolute income, relative income and income gap. Mental health is divided into three aspects: subjective well-being, prevalence of depression and prevalence of anxiety. Panel Tobit model is used to study the heterogeneous impact of residents’ income on mental health. The results show that, on the one hand, different dimensions of residents’ income have a heterogeneous impact on mental health, specifically, absolute income has a positive impact on mental health, while relative income and income gap have no significant impact on mental health. On the other hand, the impact of different dimensions of residents’ income on different types of mental health is heterogeneous. Specifically, absolute income and income gap have heterogeneous effects on different types of mental health, while relative income has no significant impact on different types of mental health.