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COVID-19 and income inequality in OECD countries

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  • John Wildman

    (Newcastle University)

Abstract

Objective To determine the association between income inequality and COVID-19 cases and deaths per million in OECD countries. Methods Cross-sectional regression methods are used to model the relationship between income inequality, as measured by the Gini coefficient, and COVID-19 reported cases and deaths per-million. Results The results demonstrate a significant positive association between income inequality and COVID-19 cases and death per million in all estimated models. A 1% increase in the Gini coefficient is associated with an approximately 4% increase in cases per-million and an approximately 5% increase in deaths per-million. Conclusions The results demonstrate that countries with high levels of income inequality have performed significantly worse when dealing with the COVID-19 outbreak in terms cases and deaths. Income inequality is a proxy for many elements of socioeconomic disadvantage that may contribute to the spread of, and deaths from, COVID-19. These include poor housing, smoking, obesity and pollution. Policy Implications The findings suggest the importance of closing the gap in income inequality and improving the health and incomes of the poorest and most vulnerable groups.

Suggested Citation

  • John Wildman, 2021. "COVID-19 and income inequality in OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(3), pages 455-462, April.
    • Handle: RePEc:spr:eujhec:v:22:y:2021:i:3:d:10.1007_s10198-021-01266-4
    DOI: 10.1007/s10198-021-01266-4
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    References listed on IDEAS

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    1. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    2. Carolina Bruzzi & Enrico Ivaldi & Stefano Landi, 2020. "Non-compensatory aggregation method to measure social and material deprivation in an urban area: relationship with premature mortality," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(3), pages 381-396, April.
    3. Enrico Ivaldi & Paolo Parra Saiani & Juan José Primosich & Carolina Bruzzi, 2020. "Health and Deprivation: A New Approach Applied to 32 Argentinian Urban Areas," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 155-179, August.
    4. Daniele Checchi & Vitorocco Peragine & Laura Serlenga, 2008. "Income Inequality and Opportunity Inequality in Europe," Rivista di Politica Economica, SIPI Spa, vol. 98(5), pages 263-292, September.
    5. Gravelle, Hugh & Wildman, John & Sutton, Matthew, 2002. "Income, income inequality and health: what can we learn from aggregate data?," Social Science & Medicine, Elsevier, vol. 54(4), pages 577-589, February.
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    More about this item

    Keywords

    COVID-19; Income inequality; OECD; Regression;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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