A number of studies have found that mortality rates are positively correlated with income inequality across the cities and states of the US. We argue that this correlation is confounded by the effects of racial composition. Across states and MSAs, the fraction of the population that is black is positively correlated with average white incomes, and negatively correlated with average black incomes. Between-group income inequality is therefore higher where the fraction black is higher, as is income inequality in general. Conditional on the fraction black, neither city nor state mortality rates are correlated with income inequality. Mortality rates are higher where the fraction black is higher, not only because of the mechanical effect of higher black mortality rates and lower black incomes, but because white mortality rates are higher in places where the fraction black is higher. This result is present within census regions, and for all age groups and both sexes (except for boys aged 1–9). It is robust to conditioning on income, education, and (in the MSA results) on state fixed effects. Although it is remains unclear why white mortality is related to racial composition, the mechanism working through trust that is often proposed to explain the effects of inequality on health is also consistent with the evidence on racial composition and mortality.
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Paper provided by Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing. in its series Working Papers with number
263.
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Paul Beaudry & David A. Green & Benjamin Sand, 2007.
"Spill-Overs from Good Jobs,"
NBER Working Papers
13006, National Bureau of Economic Research, Inc.
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