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Income distribution and health: can polarization explain health outcomes better than inequality?

Author

Listed:
  • Ying Yao

    (Hitotsubashi University)

  • Guanghua Wan

    (Chongqing Technology and Business University)

  • Dongfang Meng

    (Chongqing Technology and Business University)

Abstract

Utilizing data from the China Health and Nutrition Survey (CHNS) from 1991 to 2011, we aim to analyze the effects of income distribution on two risks for chronic diseases: body mass index (BMI) and blood pressure. Unlike the previous studies, we consider two different kinds of indicators of income distribution: inequality and polarization. Different from relative inequality indicators such as the Gini index, which measure income gaps only, the recently developed polarization indicator captures group clustering and social alienation, in addition to income gaps. Our empirical results demonstrate that both BMI and blood pressure are positively correlated with income polarization, while inequality is a weaker predictor of these health outcomes. Thus, polarization, rather than inequality, should be used when analyzing the relationship between health outcomes and income distribution. We also examine the polarization-to-health transmission mechanism using mediation and moderation analytic frameworks. The results suggest that social networks mediate the effect of polarization on BMI and neutralize the effect on blood pressure.

Suggested Citation

  • Ying Yao & Guanghua Wan & Dongfang Meng, 2019. "Income distribution and health: can polarization explain health outcomes better than inequality?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(4), pages 543-557, June.
    • Handle: RePEc:spr:eujhec:v:20:y:2019:i:4:d:10.1007_s10198-018-1016-9
    DOI: 10.1007/s10198-018-1016-9
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    Cited by:

    1. Simona Laura Dragos & Codruta Mare & Cristian Mihai Dragos & Gabriela Mihaela Muresan & Alexandra-Anca Purcel, 2022. "Does voluntary health insurance improve health and longevity? Evidence from European OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(8), pages 1397-1411, November.
    2. Guanghua Wan & Chen Wang & Xun Zhang, 2021. "The Poverty-Growth-Inequality Triangle: Asia 1960s to 2010s," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 795-822, February.
    3. Sandher, Jeevun, 2022. "Familiar Faces, Worn Out Places: The Effect of Personal and Place Prosperity On Well-Being," SocArXiv am6gq, Center for Open Science.

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    More about this item

    Keywords

    Income distribution; Polarization; Inequality; BMI; Blood pressure; China;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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