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Covid-19 and Income Inequality in OECD Countries: A Methodological Comment

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  • Stark, Oded

    (University of Bonn)

Abstract

Wildman (2021), who identifies "a clear association between income inequality [measured by the Gini coefficient] and COVID-19 cases and deaths," concludes that "a goal of government should be to reduce [income] inequalities and [thereby] improve [the COVID-19 outcomes /] underlying health of their populations." In this Comment, we argue that reducing the Gini coefficient of the income distribution of a population need not weaken the population's social stress. It is this stress which is a source of adverse health outcomes of the population. Because a measure of this stress is a component of the Gini coefficient, reducing the coefficient can leave the measure as is, or even increase the measure.

Suggested Citation

  • Stark, Oded, 2023. "Covid-19 and Income Inequality in OECD Countries: A Methodological Comment," IZA Discussion Papers 16264, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16264
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    References listed on IDEAS

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    1. Jones, Andrew M. & Wildman, John, 2008. "Health, income and relative deprivation: Evidence from the BHPS," Journal of Health Economics, Elsevier, vol. 27(2), pages 308-324, March.
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    Keywords

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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