Health, Inequality, and Economic Development

Health, Inequality, and Economic Development

June 2001 | Angus Deaton
Angus Deaton's paper explores the relationship between income inequality and health in both poor and rich countries. He discusses various mechanisms through which income inequality might affect health, including nonlinear income effects, credit restrictions, nutritional traps, public goods provision, and relative deprivation. Deaton reviews evidence on the impact of income inequality on mortality rates, geographical patterns of mortality, and individual-level mortality. He concludes that there is no direct link from income inequality to ill-health; individuals are no more likely to die if they live in more unequal places. The raw correlations found in data are likely due to factors other than income inequality, such as broader notions of inequality and unfairness. Deaton emphasizes that the lack of a direct link does not mean that other inequalities or the social environment are not important for health. He also discusses the potential role of income redistribution in improving population health, noting that this remains an open question. The paper includes theoretical accounts and empirical evidence, focusing on the links between health, income, and inequality at different levels of economic development.Angus Deaton's paper explores the relationship between income inequality and health in both poor and rich countries. He discusses various mechanisms through which income inequality might affect health, including nonlinear income effects, credit restrictions, nutritional traps, public goods provision, and relative deprivation. Deaton reviews evidence on the impact of income inequality on mortality rates, geographical patterns of mortality, and individual-level mortality. He concludes that there is no direct link from income inequality to ill-health; individuals are no more likely to die if they live in more unequal places. The raw correlations found in data are likely due to factors other than income inequality, such as broader notions of inequality and unfairness. Deaton emphasizes that the lack of a direct link does not mean that other inequalities or the social environment are not important for health. He also discusses the potential role of income redistribution in improving population health, noting that this remains an open question. The paper includes theoretical accounts and empirical evidence, focusing on the links between health, income, and inequality at different levels of economic development.
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