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PubMed1999

The distribution of health and income: a theoretical framework.

A general framework is developed to analyse variations in the distribution of population health, where individual health is modelled as a function of income, conditional upon the level of another factor such as health-related behaviour. Results are derived for the response of the level of average health in a population and the degree of health inequality to alternative health promotion policies and equiproportionate income growth. Qualitative results are shown to depend on characteristics of the individual health production functions and the frequency distribution of the other factor at each income level. These results are independent of the distribution of income. The discussion focuses on the implications of these results for contemporary research into inequalities in health and income.

Health Behavior↗
PubMed2000

Primary care, income inequality, and self-rated health in the United States: a mixed-level analysis.

Using the 1996 Community Tracking Study household survey, the authors examined whether income inequality and primary care, measured at the state level, predict individual morbidity as measured by self-rated health status, while adjusting for potentially confounding individual variables. Their results indicate that distributions of income and primary care within states are significantly associated with individuals' self-rated health; that there is a gradient effect of income inequality on self-rated health; and that individuals living in states with a higher ratio of primary care physician to population are more likely to report good health than those living in states with a lower such ratio. From a policy perspective, improvement in individuals' health is likely to require a multi-pronged approach that addresses individual socioeconomic determinants of health, social and economic policies that affect income distribution, and a strengthening of the primary care aspects of health services.

Adolescent↗
PubMed1999

Willingness to pay as a measure of health benefits.

In this paper, we discuss the use of cost-benefit analysis (CBA) for evaluating new healthcare interventions, present the theoretical basis for the use of willingness to pay as a method for valuing benefits in a CBA and describe how to obtain willingness-to-pay (WTP) measures of health benefits and how to use these values in a CBA. We review selected economic studies on consumer demand and consumer surplus and studies presenting WTP estimates for healthcare interventions. The theoretical foundations of willingness to pay as a measure of commodity value are rooted in consumer demand theory. The area under the fixed income consumer demand curve represents the consumer's maximum willingness to pay for the commodity. We identify 3 types of potential benefits from a new healthcare intervention, namely patient benefits, option value and altruistic value, and suggest WTP questions for valuing different combinations of these benefits. We demonstrate how responses to these questions can be adjusted for income effects and incorporated into economic evaluations. We suggest that the lack of popularity of CBAs in the health area is related to the perceived difficulty in valuing health benefits as well as concern over how CBA incorporates the distribution of income. We show that health benefits can be valued using simple survey techniques and that these values can be adjusted to any desired income distribution.

Consumer Behavior↗
PubMed1978

[The effects of the social security system on the life situation of old people (author's transl)].

The situation of old people is determined by the system of Social Security in a various way. A point of most importance are effects of pensions etc. on the distribution of income. It is shown, that distribution of old-age pensions follows the same scheme, which is dominating in the distribution of primary income. This is due to the basic principles of the Social Security System, which intensify inequality.

Aged↗
PubMed1990

The impact of taxation on the distribution of wealth in an economy with changing population.

The authors examine the determinants of the personal distribution of income and wealth using an overlapping generations model in which all individuals are assumed to be identical except for their inherited wealth. "It is shown that, in general, higher tax rates reduce distributive inequality as long as the rate of interest is exogenously given. In steady state, however, where the rate of interest is determined endogenously, increasing taxation and higher social security payments both diminish the capital labor ratio so that the rate of interest rises. If this interest effect is strong enough then it may outbalance the tendency toward more equality because higher interest rates enhance initial differences in the distribution of both income and wealth and, eventually, the inequality in the distribution of income and wealth in the society." The geographical focus is on developed countries.

Developed Countries↗
PubMed1997

Does maternal employment augment spending for children's health care? A test from Haryana, India.

Evidence that women's employment and earnings foster increased allocations of household resources to children's well-being have led to advocacy of investment in women's employment as a method for targeting the social benefits of enhanced economic opportunity. Work and associated earnings are hypothesized to empower women, who can then exercise their individual preferences for spending on child well-being as well as influence household spending patterns. This paper presents results from a small detailed household and community study of maternal employment and child health in northern India (one of six studies in a research network), which sought to show that such effects did indeed occur and that they could be linked to work characteristics. Careful analysis of employment and earnings showed that they are multidimensional and highly variable over occupations and seasons. Contrary to expectations, spending on health care for children's illness episodes was negatively associated with maternal employment and earnings variables in econometric analysis. The expected individual effects on women of work and earnings, if they did occur, were not sufficient to alter the general spending pattern. We conclude that the attributes of work as well as the social and cultural environment are important mediators of such effects, suggesting a confluence of 'individual' and 'collective' behavioural determinants meeting in the locus of the household.

Adult↗
PubMed1987

[Generation, household type, and income: trends in Flanders between 1976 and 1985].

"During the period 1970-1985 a general deterioration of the income positions of the younger generations and a marked improvement of the economic position of the elderly has been documented for the U.S. and the U.K. This article shows that the same trend also appeared in Flanders. The causes of these new trends in poverty and/or insecurity are analysed, including the effects of new forms of household formation and dissolution." (SUMMARY IN ENG AND FRE)

Age Factors↗
PubMed1996

Inequality in income and mortality in the United States: analysis of mortality and potential pathways.

OBJECTIVE: To examine the relation between health outcomes and the equality with which income is distributed in the United States. DESIGN: The degree of income inequality, defined as the percentage of total household income received by the less well off 50% of households, and changes in income inequality were calculated for the 50 states in 1980 and 1990. These measures were then examined in relation to all cause mortality adjusted for age for each state, age specific deaths, changes in mortalities, and other health outcomes and potential pathways for 1980, 1990, and 1989-91. MAIN OUTCOME MEASURE: Age adjusted mortality from all causes. RESULTS: There was a significant correlation (r = -0.62 [corrected], P < 0.001) between the percentage of total household income received by the less well off 50% in each state and all cause mortality, unaffected by adjustment for state median incomes. Income inequality was also significantly associated with age specific mortalities and rates of low birth weight, homicide, violent crime, work disability, expenditures on medical care and police protection, smoking, and sedentary activity. Rates of unemployment, imprisonment, recipients of income assistance and food stamps, lack of medical insurance, and educational outcomes were also worse as income inequality increased. Income inequality was also associated with mortality trends, and there was a suggestion of an impact of inequality trends on mortality trends. CONCLUSION: Variations between states in the inequality of the distribution of income are significantly associated with variations between states in a large number of health outcomes and social indicators and with mortality trends. These differences parallel relative investments in human and social capital. Economic policies that influence income and wealth inequality may have an important impact on the health of countries.

Adolescent↗
PubMed2000

A multilevel analysis of income inequality and cardiovascular disease risk factors.

Recent research has suggested that inequality in the distribution of income is associated with increased mortality, even after accounting for average income levels. Using data from the Behavioral Risk Factor Surveillance System (BRFSS), we investigated whether inequality in the distribution of income within US states is related to the prevalence of four cardiovascular disease risk factors (body mass index (BMI), history of hypertension, sedentarism, and smoking). Multilevel models (including both state-level and individual-level variables) were used to examine associations of state inequality with risk factor levels before and after adjustment for individual-level income. For three of the four risk factors investigated (BMI, hypertension, and sedentarism), state inequality was associated with increased risk factor levels, particularly at low income levels (annual household incomes <$25,000), with associations persisting after adjustment for individual-level income. Inequality was also positively associated with smoking, but associations were either stronger or only present at higher income levels. Associations of inequality with the outcomes were statistically significant in women but not in men. Although not conclusive, findings for three of the four risk factors are suggestive of a contextual effect of income inequality, particularly among persons with lower incomes.

Adult↗
PubMed1999

Income inequality and health: pathways and mechanisms.

The relationship between income and health is well established: the higher an individual's income, the better his or her health. However, recent research suggests that health may also be affected by the distribution of income within society. We outline the potential mechanisms underlying the so-called relative income hypothesis, which predicts that an individual's health status is better in societies with a more equal distribution of incomes. The effects of income inequality on health may be mediated by underinvestment in social goods, such as public education and health care; disruption of social cohesion and the erosion of social capital; and the harmful psychosocial effects of invidious social comparisons.

Health Status↗
PubMed2001

The political context of social inequalities and health.

This analysis reflects on the importance of political parties, and the policies they implement when in government, in determining the level of equalities/inequalities in a society, the extent of the welfare state (including the level of health care coverage by the state), the employment/unemployment rate, and the level of population health. The study looks at the impact of the major political traditions in the advanced OECD countries during the golden years of capitalism (1945-1980) -- social democratic, Christian democratic, liberal, and ex-fascist -- in four areas: (1) the main determinants of income inequalities, such as the overall distribution of income derived from capital versus labor, wage dispersion in the labor force, the redistributive effect of the welfare state, and the levels and types of employment/ unemployment; (2) levels of public expenditures and health care benefits coverage; (3) public support of services to families, such as child care and domiciliary care; and (4) the level of population health as measured by infant mortality rates. The results indicate that political traditions more committed to redistributive policies (both economic and social) and full-employment policies, such as the social democratic parties, were generally more successful in improving the health of populations, such as reducing infant mortality. The erroneous assumption of a conflict between social equity and economic efficiency, as in the liberal tradition, is also discussed. The study aims at filling a void in the growing health and social inequalities literature, which rarely touches on the importance of political forces in influencing inequalities. The data used in the study are largely from OECD health data for 1997 and 1998; the OECD statistical services; the comparative welfare state data set assembled by Huber, Ragin and Stephens; and the US Bureau of Labor Statistics.

Adolescent↗