The aims of this study were to investigate whether the relationship between
income and self-perceived health is similar for men and women in two contr
asting welfare states, Britain and Finland; whether the relationship betwee
n income and health is accounted for by employment status, education, and o
ccupational social class; and whether the association differs when using al
ternative ways of measuring income: gross individual and net household equi
valent income. Among British and Finnish men, low household and low individ
ual income were related to poor health, even after adjusting for employment
status, education, and social class. The adjusted relationship between ind
ividual income and health was stronger for British than Finnish men. Among
British and Finnish women, net household equivalent income was strongly rel
ated to health, but after adjusting for employment status, education, and s
ocial class this relationship became weaker for British women and practical
ly disappeared for Finnish women. For British women the association between
income and health differed strongly depending on the income measure used;
gross individual income had almost no effect on health. These results indic
ate that the association between health and income has no threshold in the
sense that only people in poverty have poorer health than others. In furthe
r studies of income and health, household equivalent income should be used
as the principal measure of income with adjustments for employment status,
and men and women should be studied separately.