IDEAS home Printed from https://ideas.repec.org/a/eee/socmed/v318y2023ics0277953622009200.html
   My bibliography  Save this article

Net worth poverty and adult health

Author

Listed:
  • Gibson-Davis, Christina
  • Boen, Courtney E.
  • Keister, Lisa A.
  • Lowell, Warren

Abstract

This study broadens the traditional focus on income as the primary measure of economic deprivation by providing the first analysis of wealth deprivation, or net worth poverty (NWP), and adult health. Net worth poverty—having wealth (assets minus debts) less than one-fourth of the federal poverty line—likely exacerbates the negative effects of income poverty (IP). In 2019, one-third of US households were net worth poor, with substantially higher rates among Black (60%) relative to White (25%) households. We estimate longitudinal growth curve (i.e., linear mixed effects) models to test how NWP, IP, and the interaction of the two predict a diverse set of health measures. We also consider whether NWP resulting from either low assets or high debts is more predictive of health outcomes and test for heterogeneous associations by race. Data come from Panel Study of Income Dynamics on 8,962 individuals ages 25 to 64, observed between 2011 and 2019 (n = 26,776). Adjusting for income poverty, net worth poverty, relative to no poverty, was associated with a one-quarter to one-third increase in the likelihood of reporting poor self-rated health, psychological distress, and work limitations. Simultaneously experiencing both NWP and IP was associated with the largest deficits. Both asset-driven (low asset) and debt-driven (high debt) NWP reduced health, but asset-driven NWP had stronger associations (e.g., a 5-percentage point increase of being in poor health, twice that of debt-driven). White, relative to Black, adults exhibited statistically larger associations for psychological distress (4.3 vs 1.1 percentage points) and work limitations (3.7 vs. 1.5 percentage points). White and Black adults who were jointly net worth and income poor exhibited the most disadvantage. Findings underscore how wealth is a critical component of financial deprivation and that wealth deprivation, particularly the lack of assets, merits attention in socioeconomic studies of health inequalities.

Suggested Citation

  • Gibson-Davis, Christina & Boen, Courtney E. & Keister, Lisa A. & Lowell, Warren, 2023. "Net worth poverty and adult health," Social Science & Medicine, Elsevier, vol. 318(C).
    • Handle: RePEc:eee:socmed:v:318:y:2023:i:c:s0277953622009200
    DOI: 10.1016/j.socscimed.2022.115614
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0277953622009200
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socscimed.2022.115614?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Courtney Boen, 2020. "Corrigendum to: Death by a Thousand Cuts: Stress Exposure and Black–White Disparities in Physiological Functioning in Late Life," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 75(9), pages 2074-2074.
    2. Deaton, Angus S & Paxson, Christina H, 1998. "Aging and Inequality in Income and Health," American Economic Review, American Economic Association, vol. 88(2), pages 248-253, May.
    3. Lauren Gaydosh & Kristen M. Schorpp & Edith Chen & Gregory E. Miller & Kathleen Mullan Harris, 2018. "College completion predicts lower depression but higher metabolic syndrome among disadvantaged minorities in young adulthood," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 115(1), pages 109-114, January.
    4. Annamaria Lusardi & Daniel J. Schneider & Peter Tufano, 2010. "The economic crisis and medical care usage," NBER Working Papers 15843, National Bureau of Economic Research, Inc.
    5. Edward N. Wolff, 2018. "The Decline of African-American and Hispanic Wealth since the Great Recession," NBER Working Papers 25198, National Bureau of Economic Research, Inc.
    6. Boen, Courtney, 2016. "The role of socioeconomic factors in Black-White health inequities across the life course: Point-in-time measures, long-term exposures, and differential health returns," Social Science & Medicine, Elsevier, vol. 170(C), pages 63-76.
    7. Maskileyson, Dina, 2014. "Healthcare system and the wealth–health gradient: A comparative study of older populations in six countries," Social Science & Medicine, Elsevier, vol. 119(C), pages 18-26.
    8. David Cesarini & Erik Lindqvist & Robert Östling & Björn Wallace, 2016. "Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players," The Quarterly Journal of Economics, Oxford University Press, vol. 131(2), pages 687-738.
    9. Robert Haveman & Edward Wolff, 2005. "The concept and measurement of asset poverty: Levels, trends and composition for the U.S., 1983–2001," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(2), pages 145-169, January.
    10. Sweet, Elizabeth & Nandi, Arijit & Adam, Emma K. & McDade, Thomas W., 2013. "The high price of debt: Household financial debt and its impact on mental and physical health," Social Science & Medicine, Elsevier, vol. 91(C), pages 94-100.
    11. Fabian T. Pfeffer, 2018. "Growing Wealth Gaps in Education," Demography, Springer;Population Association of America (PAA), vol. 55(3), pages 1033-1068, June.
    12. Houle, J.N. & Light, M.T., 2014. "The home foreclosure crisis and rising suicide rates, 2005 to 2010," American Journal of Public Health, American Public Health Association, vol. 104(6), pages 1073-1079.
    13. Yang Claire Yang & Kristen Schorpp & Courtney Boen & Moira Johnson & Kathleen Mullan Harris & Deborah Carr, 2020. "Socioeconomic Status and Biological Risks for Health and Illness Across the Life Course," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 75(3), pages 613-624.
    14. Boen, Courtney & Yang, Y. Claire, 2016. "The physiological impacts of wealth shocks in late life: Evidence from the Great Recession," Social Science & Medicine, Elsevier, vol. 150(C), pages 221-230.
    15. Hajat, A. & Kaufman, J.S. & Rose, K.M. & Siddiqi, A. & Thomas, J.C., 2010. "Do the wealthy have a health advantage? Cardiovascular disease risk factors and wealth," Social Science & Medicine, Elsevier, vol. 71(11), pages 1935-1942, December.
    16. Hojman, Daniel A. & Miranda, Álvaro & Ruiz-Tagle, Jaime, 2016. "Debt trajectories and mental health," Social Science & Medicine, Elsevier, vol. 167(C), pages 54-62.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boen, Courtney, 2016. "The role of socioeconomic factors in Black-White health inequities across the life course: Point-in-time measures, long-term exposures, and differential health returns," Social Science & Medicine, Elsevier, vol. 170(C), pages 63-76.
    2. Jinhee Kim & Swarn Chatterjee, 2019. "Student Loans, Health, and Life Satisfaction of US Households: Evidence from a Panel Study," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 36-50, March.
    3. Boen, Courtney & Yang, Y. Claire, 2016. "The physiological impacts of wealth shocks in late life: Evidence from the Great Recession," Social Science & Medicine, Elsevier, vol. 150(C), pages 221-230.
    4. Joaquín Prieto, 2021. "A multidimensional approach to measuring economic insecurity: The case of Chile," Working Papers 591, ECINEQ, Society for the Study of Economic Inequality.
    5. Prieto Suarez, Joaquin, 2022. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 114623, London School of Economics and Political Science, LSE Library.
    6. Prieto, Joaquin, 2021. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 112490, London School of Economics and Political Science, LSE Library.
    7. Naijie Guan & Alessandra Guariglia & Patrick Moore & Fangzhou Xu & Hareth Al-Janabi, 2022. "Financial stress and depression in adults: A systematic review," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-20, February.
    8. Annamaria Lusardi & Daniel Schneider & Peter Tufano, 2011. "Financially Fragile Households: Evidence and Implications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 83-150.
    9. Oscar Erixson, 2017. "Health responses to a wealth shock: evidence from a Swedish tax reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1281-1336, October.
    10. Rehnberg, Johan & Östergren, Olof & Esser, Ingrid & Lundberg, Olle, 2021. "Interdependent pathways between socioeconomic position and health: A Swedish longitudinal register-based study," Social Science & Medicine, Elsevier, vol. 280(C).
    11. Martins, Igor & Cilliers, Jeanne & Fourie, Johan, 2023. "Legacies of loss: The health outcomes of slaveholder compensation in the British Cape Colony," Explorations in Economic History, Elsevier, vol. 89(C).
    12. Martins, Igor & Cilliers, Jeanne & Fourie, Johan, 2019. "Legacies of Loss: The intergenerational outcomes of slaveholder compensation in the British Cape Colony," Lund Papers in Economic History 197, Lund University, Department of Economic History.
    13. Mudrazija, Stipica & Butrica, Barbara A., 2023. "How does debt shape health outcomes for older Americans?," Social Science & Medicine, Elsevier, vol. 329(C).
    14. Joaquín Prieto, 2022. "A Multidimensional Approach to Measuring Economic Insecurity: The Case of Chile," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 823-855, September.
    15. Hoke, Morgan K. & Boen, Courtney E., 2021. "The health impacts of eviction: Evidence from the national longitudinal study of adolescent to adult health," Social Science & Medicine, Elsevier, vol. 273(C).
    16. Belén Sanz-Barbero & Ana Rico Gómez & Alba Ayala & Patricia Recio & Encarnación Sarriá & Manuel Díaz-Olalla & María Victoria Zunzunegui, 2020. "Impact of self-reported bank fraud on self-rated health, comorbidity and pain," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 65(2), pages 165-174, March.
    17. Öztürk, Gamze & Yetkiner, Hakan & Özden, Elif, 2020. "Macroeconomic determinants of antidepressant use," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1394-1407.
    18. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    19. French, Declan & Vigne, Samuel, 2019. "The causes and consequences of household financial strain: A systematic review," International Review of Financial Analysis, Elsevier, vol. 62(C), pages 150-156.
    20. Shi, Xuezhu, 2022. "The health-wealth nexus for the elderly: Evidence from the booming housing market in China," Labour Economics, Elsevier, vol. 78(C).

    More about this item

    Keywords

    Poverty; Wealth; Net worth; Assets; Debts;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:socmed:v:318:y:2023:i:c:s0277953622009200. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/315/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.