Does income inequality harm health? New cross-national evidence

The provocative hypothesis that income inequality harms population health has sparked a large body of research, some of which has reported strong associations between income inequality and population health. Cross-national evidence is frequently cited in support of this important hypothesis, but the hypothesis remains controversial, and the cross-national work has been criticized for several methodological shortcomings. This study replicates previous work using a larger sample (692 observations from 115 countries over the 1947-1996 period), a wider range of statistical controls, and fixed-effects models that address heterogeneity bias. The relationship between health and inequality shrinks when controls are included. In fixed-effects models that capture unmeasured heterogeneity, the association between income inequality and health disappears. The null findings hold for two measures of income inequality: the Gini coefficient and the share of income received by the poorest quintile of the population. Analysis of a sample of wealthy countries also fails to support the hypothesis.     

The Sociology of Unequal Exchange in Ecological Context: A Panel Study of Lower‐Income Countries, 1975–20001

The structural theory of ecologically unequal exchange posits that through the vertical flow of exports from lower‐income countries, the stratified world economy enables higher‐income countries to misappropriate global environmental space. Tied to their unsustainable consumption levels, this misappropriation by higher‐income countries leads to the suppression of resource consumption in lower‐income countries, well below globally sustainable thresholds, which negatively impacts the well‐being of domestic populations. To evaluate key aspects of the theory, I test the hypothesis that lower‐income countries with elevated levels of exports sent to higher‐income countries exhibit lower consumption‐based environmental demand, measured as per‐capita ecological footprints. Findings for generalized least squares panel regression analyses of 66 lower‐income countries from 1975 to 2000 confirm the hypothesis, providing support for the theory. Additional results indicate that the strength of the hypothesized relationship increased in magnitude during the 25‐year period. These findings hold, net of the effects of economic development, ecological conditions, and other structural factors.     

Income inequality,cultural capital,and high school students' academic achievement in OECD countries: A moderated mediation analysis

This study examines how social context, in this case, income inequality, shapes the role of cultural capital in educational success. First, we revisit the associations between (objectified) cultural capital and academic achievement, and cultural capital's role in mediating the relationship between family SES and academic achievement. More importantly, we explore how national-level income inequality moderates these two relationships. By analyzing a multilevel dataset of 32 OECD countries, a combination of PISA 2018 data and several national indexes, we find that: (1) cultural capital not only has a positive association with students' academic achievement but also acts as a significant mediator of the relationship between family SES and academic achievement in OECD countries; (2) both cultural capital's association with academic achievement and it's mediating role are stronger in more equal countries than in unequal ones. The findings shed new light on understanding how cultural capital shapes intergenerational education inequality across countries with different levels of inequality.     

The 1960s Black Riots Revisited: City Level Explanations of Their Severity

This paper involves a city-level investigation of the 1964–1971 black rioting. It attempts to explain inter-city variations in the severity of the rioting with inter-city variations in black population size, political structure, black-white income inequality, and regional location. The research charts two new areas of inquiry: (1) It is the first study to use data on the entire rioting period (1964–71). (2) Most previous investigators have concentrated on linear hypotheses, e.g., most have posited and tested for a linear relationship between riot activity and black-white economic inequality. However, a review of theoretic commentary on rebellion reveals that some potential relationships should be hypothesized as curvilinear; more specifically, plausible hypotheses can be developed that rebellious activity is highest where economic inequality and political responsiveness are moderate. Such hypotheses are developed and tested. The overall pattern of results supported the posited curvilinear relationships.     

Volunteering and Income Inequality: Cross-National Relationships

Wilkinson and Pickett, in their 2009 book The Spirit Level, found that, in rich countries, income inequality was negatively associated with a range of indicators of well-being, but they did not consider the relationship with volunteering. This paper seeks to fill that gap. Using existing data sources, it shows that, among European countries, higher levels of volunteering are associated with lower levels of income inequality. The relationship is particularly strong for regular and sport-related volunteering. The basic Spirit Level thesis is therefore confirmed as applicable to volunteering. However, while the thesis involves just one theoretical explanation for the income inequality/well-being relationship, namely status anxiety, in the case of volunteering, other variables are also found to be at play, including government social spending, available leisure time and geo-historical traditions. It is concluded that, while high levels of volunteering, as a form of social capital, can be seen as one of a number of features of more equal societies, disentangling cause and effect may require a more holistic approach to understanding its contribution to the generation and sustaining of social well-being.     

Unequal Ecological Exchange and Environmental Degradation: A Theoretical Proposition and Cross‐National Study of Deforestation, 1990–2000*

Abstract Political‐economic sociologists have long investigated the dynamics and consequences of international trade. With few exceptions, this area of inquiry ignores the possible connections between trade and environmental degradation. In contrast, environmental sociologists have made several assumptions about the environmental impacts of international trade, but the assumptions lack theoretical specificity and are thus empirically under‐investigated. Bridging these two complementary areas of macrosociology, the present study proposes and tests a structural theory of unequal ecological exchange. The theory posits that more‐developed countries externalize their consumption‐based environmental costs to less‐developed countries, which increase forms of environmental degradation within the latter. To test a key assertion of the theory, a weighted index of vertical trade is created that quantifies the relative extent to which exports are sent to more‐developed countries. Using the index, cross‐national panel analyses of deforestation, 1990–2000 are conducted to test the hypothesis that less‐developed countries with higher levels of exports sent to more‐developed countries experience greater rates of deforestation, net of other factors. Results of the analyses confirm the hypothesis, providing support for the theory of uneven ecological exchange. Additional findings correspond with other sociological studies of deforestation, particularly those that focus on the effects of rural and urban population growth as well as level of capital intensity and rate of economic development.     

INEQUALITY AND GROWTH IN THE UNITED STATES: WHY PHYSICAL AND HUMAN CAPITAL MATTER

We investigate the relationship between economic growth and top income inequality under the influence of human and physical capital accumulation, using an annual panel of U.S. state‐level data. Our analysis is based upon the “unified” framework offered by Galor and Moav (2004) while the empirics account for cross‐section dependence, parameter heterogeneity, and endogeneity, in nonstationary series. We conclude that changes in inequality do not influence growth, neither in the short run nor in the long run in the United States as a whole in the 1929–2013 period. Our findings are robust to the inclusion of overall income inequality measures. These findings provide support for the theoretical prediction of the unified theory of inequality and growth, according to which the growth effect of inequality becomes insignificant in the latest stages of economic development that the United States experiences during our period of investigation. Therefore, future policies aiming at moderating the concentration at the upper end of income distribution are not likely to have adverse growth consequences in developed countries such as the United States. (JEL I21, O47, C23)     

Has the Internet Increased Trade? Developed and Developing Country Evidence

Developing countries export more to developed, but not other developing countries, when Internet penetration is higher. Although this could be because Internet penetration stimulates exports, it could also be because trade openness encourages Internet use. To test the direction of causation, we allow Internet use to be determined endogenously using countries' regulation of data services as an instrument. The results suggest that access to the Internet does improve export performance in developing countries, although not in developed countries. In other words, improving Internet access in a developing country will stimulate exports from that country to rich countries. (JEL F15 )     

Standardized Income Inequality Data for Use in Cross-National Research

This article introduces the first version of a new, standardized data tool that can be used to test models of global income allocation, the Standardized Income Distribution Database (SIDD). It is based on a comprehensive collection of income distribution data compiled by the United Nations University's World Institute for Development Economics Research (UNU-WIDER 2000 ). International and intertemporal inconsistencies in these data have historically limited its use. We estimate adjustment factors for different scopes of coverage, income definitions, and reference units which, when applied to the raw data, bring all data to a common standard based on national coverage, gross income, and household per capita inequality. Criterion validity checks confirm that these adjustments boost the correlation between measured income inequality and national social indicators. The SIDD is also clean, free of duplicates, and easy to access. The SIDD will be useful both to students reading income inequality and to those conducting broad cross-national research on the relationship between income inequality and a range of important outcomes, such as health, criminality, and social support.     

Nonlinear dynamics of the finance-inequality nexus in developing countries

This study examines the dynamics of the finance-inequality nexus in 35 developing countries during the past two decades, using two data sets of income inequality: the University of Texas Inequality Project (UTIP) and the Standardized World Income Inequality Database (SWIID). The empirical results of this study, based on the dynamic panel models, provide new evidence that highlights the nonlinear U-shaped relationship between financial deepening and income distribution. It implies the narrowing of the income-inequality gap at the early stage of financial development of the countries. This improvement, however, will only be sustainable dynamically below a certain threshold level. Further deepening above that level will lead to a reverse effect, which deteriorates income inequality. This reflects the inefficiency of financial markets in improving economic inequality when the threshold level is overshot.     

INEQUALITY AND TRUST: NEW EVIDENCE FROM PANEL DATA

We estimate the causal link from income inequality to generalized trust by reconsidering the country‐level evidence on this issue. First, we exploit the panel dimension of the data, thus controlling for any country unobservable time‐invariant variables, and find a negative relationship between the two variables that holds only for developed countries. Second, we focus on these advanced economies and provide instrumental variable estimates using the predicted exposure to technological change as an exogenous driver of inequality. According to our findings, the negative causal effect of inequality on trust is even larger than that coming from ordinary least squares estimation. We also provide new insights on the effects of different dimensions of inequality, exploiting measures of both static inequality—such as the Gini index and top income shares—and dynamic inequality—proxied by intergenerational income mobility. (JEL D31, O15, Z13)     

Ökonomische und nicht-ökonomische Gefahren für Demokratien

Muller (1995a) claimed that during the 1960s and 1970s countries with (high) income inequality are more likely to face decline in democracy than countries with lower income inequality. This article uses new data to compare the negative impact of two economic determinants (income inequality, inflation) and two non-economic determinants (percent of Islamic population, world system periphery) on democracy. It is found that neither income inequality nor world system periphery does contribute to the explanation of the decline in democracy. Only inflation offers a tentative explanation for decline in democracy. The validity of the results is lessened by sample problems. Especially the data from communist countries appear to be less reliable.     

INCOME INEQUALITY: THE IMPLICATIONS OF ECONOMIC STRUCTURE AND SOCIAL CONDITIONS

During the past few decades income inequality has been increasing in the United States and other developed nations, and is having major social consequences. In this study county-level data for the United States was analyzed to test the relative importance of three alternative approaches for explaining increased levels of inequality. These three approaches include economic structure, social conditions, and a model that maintains that both social conditions and inequality are a function of economic structure. The results revealed that social conditions were much more strongly related to inequality than economic structure and little support was found for the theoretical model. The two social conditions most strongly related to inequality included female employment and the percent of female-headed households. Counties with high levels of female employment tended to have low levels of inequality, while counties with high proportions of female-headed households tend to have high levels of inequality. The implications of these findings are discussed.     

Inequality,ethnic diversity,and redistribution

Seminal political economy models from Meltzer and Richard, among others, theorize that, in democracies, more inequality should lead to more redistribution. Most country-level empirical studies find weak support for this prediction. This paper makes two contributions to this debate. First, I identify some of the key shortcomings of previous tests and provide a new empirical analysis that corrects for these limitations. Using a dataset covering 89 developed and developing democracies, I find that inequality is associated with more redistribution. Second, I show that inequality’s effect on redistribution is weaker in democracies in which the poor – defined as the people with income below the median – are divided along ethnic lines than in those in which they are ethnically unified. Taken together, these results suggest that although economic inequality increases redistribution, the magnitude of the relationship is conditional on how inequality interacts with other social cleavages, such as ethnicity.     

Inequality,Health Infrastructure,and Spatial Context: Understanding Pathways to Variations in the Causal Determinants of Race-Specific Mortality Rates

Previous research examines the ecological relationship between income inequality and mortality, and results are inconclusive. This analysis builds upon these findings by implementing a spatially weighted path analysis to better understand the mediating relationships of economic and social inequality, health infrastructure, and mortality. In the analysis, overall and race-specific mortality rates are combined with local health infrastructure data, income inequality and racial segregation data, and a series of ecological controls to undertake this examination. Ultimately, findings show that income inequality is a stronger determinant of mortality than is segregation, for whites and blacks, regardless of the existing health infrastructure. We also find racial disparities in the direct effect of local health infrastructure on mortality. In contrast to previous literature suggesting no association between income inequality and mortality after accounting for race and model sophistication, we argue that the significance of the relationship persists using race-specific, spatially weighted path models.     

Inequality and growth in advanced economies: an empirical investigation

This paper empirically investigates the effect of income and human capital inequality on economic growth in different regions of the world. In the estimation of a dynamic panel data model that controls for country-specific effects and takes into account the persistency of the inequality indicators, the results show a different effect of inequality on growth depending on the level of development of the region. Specifically, we find a negative effect of income and human capital inequality on economic growth, both in the sample as a whole and in the low and middle-income economies, an effect that vanishes or becomes positive in the higher-income countries.     

The Social Inclusion and Inequality Nexus: EU versus non‐EU migrants

This study examines the relationship between social inclusions of migrant and income inequality. Both positive and negative impacts of social inclusion on income inequality have been observed in the previous literature. This study specifically considers two types of migration flow: migration flow from EU and migration flow from non‐EU. The aim of this article is twofold: 1) is there a strong association between social inclusion of migrants and income inequality, 2) is there any different impact of social inclusion of two types of migrants (EU vs non‐EU)? Using data from 33 mainly European countries over the period 2003‐2015 and controlling for savings rate, arable land rate and age‐dependency ratio, our results indicate that there is a significant negative relationship between social inclusion and income inequality. In particular, we find that social inclusion from non‐EU migrants significantly reduces income inequality compare with EU migrants.     

Middle Class Identity in the Modern World: How Politics and Economics Matter

It is widely accepted that people tend to identify with the middle classes regardless of their social class position. Nevertheless, this “middle class identity bias” is not equally prominent in all western democracies. The goal of this article is to assess the role of political and economic conditions in shaping this phenomenon. By exploring the relationship between class identity and national context in 15 modern societies, I address two main questions: (1) how individual‐level income affects where people place themselves in the class system, and (2) how national political and economic context affects this relationship. In doing so, I offer several important findings. First, although there is a positive relationship between income and class identification in all 15 societies, middle class identification is weakest when income inequality is high. Consistent with previous findings, the results suggest that economic development has a positive impact on class identity. The results also uncover a role for political ideology by suggesting a lingering affect of Communist rule. Even after controlling for economic development and income inequality, respondents in former Communist countries are more likely than others to identify as belonging to a low social class.     

The Transnational Tilt of the Treadmill and the Role of Trade Openness on Carbon Emissions: A Comparative International Study, 1965–2010

There are various schools of thought regarding the relationship between the environment and economy. Ecological modernization argues that the harmful effects of economic growth and development on the environment decline through time, whereas the treadmill of production and ecologically unequal exchange postulate different perspectives. This study relies on World Bank and World Resources Institute data for the period of 1965–2010. Time‐series cross‐sectional Prais‐Winsten (PW) regression models with panel‐corrected standard errors (PCSE) are employed to examine whether economic growth and trade openness intensified or decoupled in relation to three measures of carbon dioxide (CO₂₎ emissions during this period. The findings of this study indicate that there has been a “tilt” in the treadmill of production—that is, the most environmentally degrading production processes have moved to less developed countries. Furthermore, integration into the world economy has been associated with an intensification in CO₂ emissions for less developed countries. Surprisingly, however, this phenomenon does not seem to be driven by exports sent to high‐income nations, suggesting that there are mechanisms embodied within the global organization of production that require further exploration.     

Untangling the tolerance of socioeconomic inequality: Comparing Japan,the United States,South Korea,and the People's Republic of China

The last three decades have witnessed major institutional and structural transformations across both economically developed and developing countries. While many individuals and groups have benefited from these changes, they have simultaneously resulted in growing disparities between the haves and have-nots. The growing socioeconomic inequalities, however, have not been met with significant resistance and it has been even observed that people have become more tolerant of inequalities. This article explores the motivations behind tolerating socioeconomic inequality, and investigates how the tolerance of socioeconomic inequality has changed over the past 25 years, while also comparing it across very distinctive political and socioeconomic regimes. This study overcomes a gap in research by employing longitudinal, cross-sectional survey data to analyze temporal change in attitudes towards inequality. Fixed effects models are applied on five waves of World Values Survey data (1994–2020) on four distinctly different post-industrial countries: Japan, the People's Republic of China, South Korea, and the United States. The paper argues that, on an individual level, there is a tendency to accept inequality normalizing narratives and defend one's own self-interest, derived from one's structural position. This accounts for a considerable part of the variation in tolerance for socioeconomic inequality across these nations. The article concludes that trends in tolerating socioeconomic inequality have over time become more similar across these four countries with distinctly different political–economic regimes.