1One of the most important studies of the relationship between income and health in the elderly is a true experiment conducted in Mexico in the late 1990s (Gertler 2000). Under an income support experiment, entitled PROGRESA, the Mexican government has been providing about $800 million in aid to 2.6 million rural families, almost one-third of all rural families. The results showed striking improvements in health for children, adults, and those over age fifty. Those over age fifty whose only requirement for participation was a yearly preventive checkup had significant reductions in activity limitations owing to illness, fewer days bedridden due to sickness, and a more general increase in energy levels as measured by their ability to walk distances without significant fatigue. Children and adults also showed improved outcomes. But the independent effect of income on the children’s health due to the medical care requirements linked to the receipt of income benefits could not be proved. Of course, the limitation of this study is the fact that it was conducted in a developing country, and it is unclear whether the results are applicable to a wealthier country. [Return to Text]