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The aim of this paper is to develop a better understanding of the relationship between income and health using a cross-sectional survey of the general British population. It is divided into two parts. First, it examines a number of methodological inconsistencies in the existing literature and assesses their consequences for the inferences that can be drawn about the income-health association. These issues include: the measurement of income and its functional form; health selection; and the role of confounders. Second, it explores the relative strength of the income-health association in contrast to that of other socioeconomic measures. The relationship between income and health is complex. However, having taken into account a range of methodological problems, income is still significantly associated with health. The association appears to be non-linear and is attenuated but not removed by controlling for health selection effects. The inclusion of a wide range of confounders into models of income and health reduces the association between them, but does not make it insignificant. In comparison to other socioeconomic measures, income appears to be a better discriminator of health status than education or occupation. However, tenure and car ownership seem to be at least as good if not better than current income. [ABSTRACT FROM AUTHOR]

The article presents an argument that stresses the existence of substantial inequalities in health and in health care in Western Europe and the limited impact of the State in mitigating these inequalities in the last 30 years. The author drew evidence to support these arguments from the countries of the European Community, with particular attention to the British health care system. The distinction between health care and health status, the inequalities for health care and health status as well as the future of health and health care policy in Western Europe are discussed. An analysis of general problems likely to beset all health care systems is also presented.