Introduction: Income distribution is such a controversial subject which besides the economic aspect, its social aspect is also very important, as any economic approach to income distribution, followed by the  special social consequences inevitably. Given that health is one of the categories that directly and indirectly affected by income distribution, in this study, we examine the relationship between income inequality and life expectancy as an indicator of health regarding the role of other factors such as health, environment and community can be studied.

Method: This paper uses time series data of 1351-1388 to evaluate the long-run and short-run dynamic relationships among the Gini coefficient, income per capita, doctors per capita, literacy rates and life expectancy in Iran. In order to test for existence of long-run relationship the bound testing approach to level relationship and error correction model (ECM) are applied.

Finding: Bounds test results indicate the existence of long-run equilibrium relationship between income inequality, literacy rate, and doctores (per 10000 population) and life Expectancy. According to the results of the ECM, deviations from long-run equilibrium rate adjustment is equal to 0/15. This confirms that the deviation from the long-run equilibrium is adjusted with rate of 15% per period. Moreover, estimated long-run coefficients indicate that an increase in literacy rate and physicians per ten thousand people, improves health indicators. While the effect of income inequality on health is significant and negative, rising inequality threatens public health.

Conclusion: The results indicate that income inequality affects public health more than any other variables. Therefore, the income distribution is important determinant of the health and the appropriate policies to improve income distribution can be effective in promoting public health.