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Dear Colleagues

A new paper has been published by the New Zealand Treasury

Working Paper 01/29

Ken Judge and Iain Paterson, University of Glasgow

Poverty, Income Inequality and Health

Available on line @

http://www.treasury.govt.nz/workingpapers/2001/twp01-29.pdf

Abstract

The purpose of this report is to consider the legitimacy of the assumption
that communities or societies with more unequal income distributions have
poorer health outcomes. We present a critical review of the existing
international literature on the relationship between income, income
inequality and health, in terms of conceptual approaches, research methods
and the policy implications drawn from it. Where possible, we also offer
some guidance for judging between policy priorities based on the relative
importance of income inequality versus other potential causal factors in
determining population levels of health. An overview of the potential
relationship between income, income inequality and health is set out,
followed by a discussion of the methodological and technical issues required
to explore these links. A literature review of what we consider to be the
key contributions in the income inequality - health debate is presented, as
is a re-analysis of data derived from Chapter 3 of Social Inequalities in
Health: New Zealand 1999, which focuses on income, income inequality and
health. We conclude that the relative effect of income inequality per se as
a determinant of population health has been greatly exaggerated. The
frequently observed association between income inequality and health at the
regional level is likely to be a by-product of the non-linear relationship
between individual income and health, although we cannot dismiss the
possibility that income inequality may also act as a marker for other area
characteristics that influence health. We stress that a life course approach
is paramount for any study into the relationship between poverty and health,
while the use of multi-level data analysis is fundamental in attempting to
establish the relationship between income distribution and area level health
status.


David McDaid
LSE Health and Social Care