Does Relative Deprivation Predict the Need for Mental Health Services?

Background: Several studies postulate that psychological conditions may contribute to the link between low relative income and poor health, but no one has directly tested the relationship between relative deprivation and mental health disorders. In this paper, we investigate whether low income relative to a reference group is associated with a higher probability of depressive disorders or anxiety disorders. Reference groups are defined using groups of individuals with similar demographic and geographic characteristics. We hypothesize that perceptions of low social status relative to one’s reference group might lead to worse health outcomes. Aims: We attempt to determine whether an individual’s income status relative to a reference group affects mental health outcomes. Our contributions to the literature include (i) defining referenc