Inequality, Wealth and Health: Is Decreasing Income Inequality the Key to Create Healthier Societies?

The idea that the level of stratification of societies contributes to the well-being of their members is gaining popularity. We contribute to this debate by investigating whether reducing inequalities in the income distribution of societies is a strategy for improving population health, especially appropriate for those countries that have reached the limits of economic growth. We test this idea on a dataset covering 140 countries and 2360 country-year observation between 1987 and 2008 and formulate hypotheses separately for countries with different level of economic development. We indeed found that countries with higher levels of income inequality also have lower levels of life expectancy (our measure of population health), and this result was consistent both in cross-sectional and longitudinal analyses. However, the relationship was found only among low- and middle-developed countries. In the group of high-developed countries, the relationship between income inequality and life expectancy was non-significant, which contradicts the literature. Expectations on the relationship between a country’s wealth and health were confirmed: economic growth does contribute to improving population health, but this effect is weaker in more economically developed countries. These results imply that a decrease in a country’s income inequality parallel with an increase in its wealth can help to improve health in economically lesser-developed countries, but not in high-developed countries.     

Support for democracy in cross-national perspective: The detrimental effect of economic inequality

Using survey data and national statistics on 35 modern democracies, this research explores the relationship between economic and political conditions and support for democracy. As expected from modernization theory, support for democracy tends to be highest in countries with a high level of economic development. More importantly, however, I contribute a new finding that income inequality matters much more. Specifically, citizens from countries with relatively low levels of income inequality tend to be more likely than others to support democracy. I also find that household income is positively related to support for democracy in most countries, though it tends to have its strongest effect if economic development is high and income inequality is low. Finally, even after taking into account the level of economic development in one's country, people from former Communist countries tend to have far less support for democracy than those from more established democracies.     

Income inequality and fertility: A comparative view

Summary Most studies pertaining to the relationship between population and economic development suffer from a major flaw. Researchers use aggregate measures like income or energy consumption per head as indicators of economic development. Such aggregate measures fail to take into account the nature of the distribution of income or energy consumption to the population. The present study attempts to demonstrate the importance of incorporating the nature of distribution of resources as an important intervening variable in the study of the overall relationship between population and economic development. A measure of income inequality is developed which represents the difference between rural and urban incomes. This measure is justified in terms of the distinctiveness of urban and rural sectors in the process of development. The data used relate to societal measures of fertility, income, income inequality, etc. Consistently with existing literature, we observe that, generally speaking, economic development does entail a reduction in rural-urban income inequalities. On the other hand, a substantial part of the negative effect of an increase in income per head can be nullified if such an increase were not also accompanied by a reduction in rural-urban income inequality. Also, a substantial part of the negative effect of an increase in income per head and the level of education in reducing the level of infant mortality would be nullified if it did not also result in a reduction of rural-urban income inequality. On the other hand, it is quite possible for the level of education in a society to increase together with an increase in income per head without substantially altering the extent of inequality of income between the rural and the urban population. It is suggested that the positive relationship between rural-urban income inequality and the level of fertility is due to higher rural fertility rates in a high-inequality country. By implication, this would mean that higher standards of living for the rural population compared with its urban counterpart will have a favourable impact in reducing rural fertility.     

A Cross-National Analysis of Lifespan Inequality, 1950–2015: Examining the Distribution of Mortality Within Countries

Cross-national health research devotes considerable attention to lifespan and survival rate disparities that are found between countries. However, the distribution of mortality across the world is shaped mostly by what happens within countries. We address this striking gap in the literature by modeling length-of-life inequality for individual nation-states. We use life tables from the United Nation’s (2015) World Population Prospects to estimate inequality levels for 200 countries across 13 waves between 1950 and 2015. We find that lifespan inequality is steadily declining across the world, but that each country’s level of inequality, and the rate at which it declines, vary considerably. Our models account for more than 90% of the longitudinal and cross-sectional variation in country-level lifespan inequality during the 1990–2015 period. Maternal mortality is the strongest predictor in our model, while disease prevalence, access to safe water, and health interventions figure prominently, as well. Gross domestic product per capita shows the expected curvilinear association with lifespan inequality, while primary education (both overall enrollment and gender equity in enrollment), external debt, and migration also play critical roles in shaping health outcomes. By contrast, the distribution of political and economic resources (i.e., democracy and income inequality) is less important.

     

Income and inequality as determinants of mortality: An international cross-section analysis

This paper analyses the effects of income and income distribution on mortality. The likely relation between income and mortality for individuals is discussed, and implications for the determinants of mortality at the community level inferred. Measures of income inequality are likely to be related to mortality on aggregate data because of the non-linearity of income effects. An international cross-section analysis is then undertaken in which different measures of income and income distribution are investigated as determinants of mortality, with life expectancy at birth and age five, and infant mortality taken as measures of the dependent variable. It is found that income distribution is consistently and strongly related to mortality; in a relatively inegalitarian country life expectancy may be between five and ten years lower than in a more egalitarian country.     

我国人口增长的经济教育因素的实证分析

本文以相关理论为基础,通过对影响人口增长的经济和教育因素进行计量分析,建立了人口增长与经济增长、教育水平、收入分配差距三者之间的计量经济模型,分析得出结论:我国当前的收入分配不平等是促进人口增长的一个重要因素,而经济增长和教育水平的提高则是对人口增长的抑制因素。     

Reference Groups and Pensioners’ Subjective Economic Well-Being in Europe

This study contributes to the interdisciplinary debate over the effects of absolute and relative income on subjective well-being by introducing country-level measures of income into the analysis of pensioners’ economic well-being. Both the relevance of alternative reference groups for different phases of old age, measured through median incomes, and the effect of general income inequality within countries are explored. Analyses are based on the cross-sectional components of the survey European Union Statistics on Income and Living Conditions from 2005 to 2011, containing information on 458,769 pensioners from 31 European countries. With the multilevel linear regression analysis method, the effects of different income measures are analyzed both at the individual and country levels. The main result shows that the average income level of pensioners within countries hold spillover effects strong enough to conclude other pensioners constitute a relevant reference point. Pensioners’ high income level decreases individual income adequacy regardless of age. Results also indicated the labour market group having varying effects on different age groups. The general income inequality does not affect pensioners’ subjective economic well-being.     

The Multidimensional Gender Inequalities Index (MGII): A Descriptive Analysis of Gender Inequalities Using MCA

This paper constructs a weighted measure of the multidimensional concept of gender inequality: the Multidimensional Gender Inequality Index (MGII). Multiple Correspondence Analysis is used to rank the separate forms in which gender inequality appears in developed and developing countries respectively. Eight dimensions were identified as relevant for economic purposes: identity, physical integrity, intra-family laws, political activity, education, health, access to economic resources, and economic activity. In the 109 developing countries considered, gender inequality in the identity and family dimensions are particularly severe for women: these dimensions hence have greater weight in the MGII. However, in OECD countries gender inequality occurs mainly in the political and family dimensions. Nevertheless, the family sphere remains particularly important for gender inequality, whatever the level of development. The MGII is a non-linear weighted composite indicator of gender inequality which yields a country ranking. The South-Asian region is calculated to be the most unequal.     

The impact of income inequality on self-rated general health: Evidence from a cross-national study

Previous studies report a strong negative association between income inequality and population health at the aggregate level. However, it is still in hot debate whether this ecological association indicates a genuine, causal effect of income inequality on health, as asserted by the Wilkinson hypothesis, or it simply reflects a nonlinear effect of individual income on health, as suggested by the absolute income hypothesis. Drawing data from the 2005 round of the World Values Survey, I analyze the relationship between individual income, income inequality, and self-rated general health in a multilevel framework. Results show no independent detrimental effect of country income inequality on individual self-rated general health. In contrast, self-rated general health is strongly associated with absolute material conditions both at the individual and at the country level. Therefore, this study gives more evidence to the absolute income hypothesis, i.e., the strong ecological association between income inequality and population health is more likely a reflection of the nonlinear effect of individual income on health rather than a genuine effect of income inequality.     

Inter-Country Inequiality in Social Indicators of Development

In 1955 Kuznets developed a hypothesis about the relationshipbetween the degree of personal income inequality within a countryand the level of economic development of the country. Thishypothesis suggests that with economic growth, interpersonalincome inequality first increases but after a certain pointstarts to decline. This is known as the inverted-U hypothesis. In1965, Williamson applied this inverted-U hypothesis to the widelyobserved pattern of intra-country regional inequality witheconomic development. This hypothesis was later extended tointer-country inequality in Per Capita Gross National Product(PCGNP) by Ram (1989). The paradigm of development economics hasrecently been shifted from PCGNP to human well-being and it hasbeen broadly accepted that economic growth does not automaticallytranslate into human well-being. The present study is an attemptto extend the application of the inverted-U hypothesis to explainthe relationship between inter-country inequality in socialindicators of development and economic growth.     

Distributional Implications of the Economic Development in the Baltics: Reconciling Micro and Macro Perspectives

The aim of this paper was to analyse distributional implications of the economic development reflected at the macro level in the Baltics. We demonstrated how the concepts of income and its measurement at macro and micro levels can be reconciled using data recorded in the EU Survey on Income and Living Conditions (EU-SILC) and National Accounts. We found that household incomes in the Baltics diverge and lag behind incomes reflected at the macro level. This was especially true for two income categories: property and mixed incomes. Average gaps in social benefits and taxes were small, and these were medium for wages and salaries. Adjusting incomes in EU-SILC to cover the observed gaps resulted in increase in income inequality indicators for all three countries, especially for Latvia and for the period of resumed economic growth following the latest economic crisis in Lithuania. Hence, divergences between macro and micro level accounts on incomes hide potentially higher levels of income inequality than shown in official distributional statistics.     

Understanding material deprivation: A comparative European analysis

In this paper, taking advantage of the inclusion of a special module on material deprivation in EU-SILC 2009, we provide a comparative analysis of patterns of deprivation. Our analysis identifies six relatively distinct dimensions of deprivation with generally satisfactory overall levels of reliability and mean levels of reliability across countries. Multi-level analysis based on 28 European countries reveals systematic variation in the importance of within and between country variation for a range of deprivation dimensions. The basic deprivation dimension is the sole dimension to display a graduated pattern of variation across countries. It also reveals the highest correlations with national and household income, the remaining deprivation dimensions and economic stress. It comes closest to capturing an underlying dimension of generalized deprivation that can provide the basis for a comparative European analysis of exclusion from customary standards of living. A multilevel analysis revealed that a range of household characteristics and household reference person socio-economic factors were related to basic deprivation and controlling for contextual differences in such factors allowed us to account for substantial proportions of both within and between country variance. The addition of macro-economic factors relating to average levels of disposable income and income inequality contributed relatively little further in the way of explanatory power. Further analysis revealed the existence of a set of significant interactions between micro socio-economic attributes and country level gross national disposable income per capita. The impact of socio-economic differentiation was significantly greater where average income levels were lower. Or, in other words, the impact of the latter was greater for more disadvantaged socio-economic groups. Our analysis supports the suggestion that an emphasis on the primary role of income inequality to the neglect of differences in absolute levels of income may be misleading in important respects.     

The variance of population characteristics in stable populations, with applications to the distribution of income

Summary Stable population theory has recently been used to analyse the effects of changes in fertility and mortality on economic variables such as income per head. In this paper more general results are derived to describe the effects of changing vital rates on the variance and higher moments of the distribution of some age-dependent variable. Simple analytical expressions are derived which decompose the effects of changes in age structure into the effects on inter-cohort and intra-cohort variance. The results are easily applied to standard measures of the distribution of income. By combining the analytical results with actual age profiles of income and income variance from the United States and Brazil it is observed that both the magnitude and direction of the effects of population growth on measured inequality are sensitive to the specific age profiles used. The most surprising result is that the Brazilian age profiles suggest that higher growth rates may actually reduce measured inequality, although the effect is relatively small.     

China＇s Social Security Policy——Information Office of the State Counc of the People＇s Republic of China

Social security is one of the most important socioeconomic systems for a country in modern times. To establish and improve a social security system corresponding to the level of economic development is a logical requirement for coordinated economic and social development. It is also an important guarantee for the social stability and the long-term political stability of a country.     

The polarizing effect of economic inequality on class identification: Evidence from 44 countries

Using cumulative logit mixed models fitted to World Values Survey data from 44 countries, we explore the impact of economic conditions – both at the individual-level and the national-level – on social class identification. Consistent with previous research, we find a positive relationship between household income and class identification in all countries that we explore, though this relationship varies substantially. Also corroborating previous research, we find that ‘low’ class identifications are more likely in poor countries than in rich ones. However, in contrast to previous research that has neglected the role of inequality, our results indicate that the effect of economic development diminishes if income inequality is considered in the same model. We further demonstrate that income inequality has an important polarizing effect on class identification. Specifically, the relationship between household income and class identity tends to be strongest in countries with a high level of income inequality.     

Education Expansion, Educational Inequality, and Income Inequality: Evidence from Taiwan, 1976–2003

The expansion of higher education in Taiwan starting from the late 1980s has successfully raised the average level of education. Using the concept of the education Gini, we find that the educational inequality declined as average schooling rose during the period of 1976–2003. The impacts of a rising average schooling and a declining educational inequality are also tested empirically in this paper. The evidence supports that a higher level of average schooling will generate a lower income inequality. On the other hand, a lower educational inequality, as measured by education Gini coefficient, will also cause a lower income inequality. Skill-biased technological change that shifts the labor demand from unskilled workers toward skilled workers is the most likely cause for the rising income inequality in Taiwan. However, the trend of rising income inequality could be reversed due to possible future over-education and unemployment in the labor market.     

Government involvement in the economy and the distribution of income: A cross-national study

This study explores the effect of government involvement in the economy, as measured by central government expenditures as a percent of Gross Domestic Product (GDP), on the distribution of income. It is hypothesized that state spending — in the form of transfer payments to firms and households, government purchases, and military spending — will have a negative influence on income inequality only at high levels of economic development. Multivariate analysis confirms this hypothesis. The results show that government expenditures as a percent of GDP and level of industrialization interact to produce a negative impact on income inequality. This finding, moreover, holds up after additional investigation for possible OLS assumption violations, sample dependence of results, and model misspecification. This paper was presented at the 1988 annual meeting of the American Sociological Association.     

International Comparisons of Trends in Economic Well-being

This paper develops a new measure of economic well-being for selectedOECD countries for the period 1980 to 1996 and compares trends in thisnew Index to GDP per capita. We argue that the economic well-being ofa society depends on the level of average consumption flows, aggregateaccumulation of productive stocks, inequality in the distribution ofindividual incomes and insecurity in the anticipation of future income.However, the weights attached to each component will vary, dependingon the values of different observers. We argue that public debatewould be improved if there is explicit consideration of theaspects of economic well-being obscured by average income trends andif the weights attached to these aspects were made visible and wereopen for discussion.     

农村养老保险制度的环境建设分析

文章认为 ,中国农村养老保险制度建设的经济环境、人口环境和政治环境基本具备 ,但农村居民的收入水平、农村居民收入水平地区差异以及农村大量剩余劳动力的存在直接制约农村居民养老保险制度的建立 ,因而政府在农村养老保险制度建立过程中 ,应从提高农村居民收入水平、加大政府财政转移支付力度和加强农村组织资源建设几个方面优化农村养老保险制度的环境     

Ethnic Diversity and Inequality in Sub-Saharan Africa: Do Institutions Reduce the Noise?

Studies on the causes of income differences between the rich and the poor have received an extensive attention in the inequality empirics. While ethnic diversity has also been identified as one of the fundamental causes of income inequality, the role of institutions as a mediating factor in the ethnicity-inequality nexus has not received the scholarly attention it deserves. To this end, this study complements the existing literature by investigating the extent to which institutional framework corrects the noisy influence originating from the nexus between “ethnic diversity” and inequality in 26 sub-Saharan African countries for the period 1996–2015. The empirical evidence is based on pooled OLS, fixed effects and system GMM estimators. The main findings reveal that the mediating influences of institutional settings are defective, thus making it extremely difficult to modulate the noisy impacts of ethno-linguistic and religious heterogeneity on inequality. In addition, the negative influences orchestrated by ethno-linguistic and religious diversities on inequality fail to attenuate the impact of income disparity even when interacted with institutions. On the policy front, institutional reforms tailored toward economic, political and institutional governances should be targeted.