Wealth inequality and health: A political economy perspective

Although research on wealth and health is sparse (due to a lack of quality wealth data), researchers have argued that wealth may have more of an impact on health than income. However, results of several studies suggest that the gradient is not as steep in countries with more “social wealth”, represented by generous welfare states and institutionalized redistributive policies. Using data compiled by Davies et al. (2007), I explore the relationship between wealth inequality and population health outcomes in 14 rich countries. Bivariate analyses reveal that wealth inequality (Gini coefficient) is strongly correlated with both life expectancy and infant mortality rates, even after controlling for GDP per capita and a number of other labour and welfare state variables. Descriptive analyses of the welfare state policies, political institutional characteristics, and ideological discourses in the 14 countries then contextualize the correlational analyses and provide a richer understanding of the relationship between welfare state policy, wealth inequality and health. The research is informed by a political economy perspective, which encourages us to go upstream to understand the dynamics through which wealth becomes concentrated in the hands of a few, and what this inequality might mean for the health of our democracies and populations.