Wealth and Health: An International Perspective

Are wealth and health intertwined? How do these two factors interact, and to what extent does this connection vary across nations?

Measuring the Relationship

In a recent study conducted by researchers, the link between wealth and health was examined using a metric known as the “concentration index” (CI). This index serves as a yardstick to gauge the disparities in health outcomes based on individuals’ wealth status.

The CI is derived from the concentration curve, which plots the distribution of a health variable relative to the population, categorized from least wealthy to wealthiest. It quantifies the disparity in health outcomes based on socioeconomic standing. A positive value indicates that health outcomes are more prevalent among the affluent, denoting a pro-rich inequality.

The methodology employed in this study builds upon the work of Wagstaff (2005) and focuses on non-housing wealth as a measure of economic status and self-reported health as a measure of well-being. Data from the Health and Retirement Survey (HRS) in the US and the Survey of Health, Ageing, and Retirement in Europe (SHARE) were utilized for analysis.

Findings and Insights

The research unearthed striking patterns of wealth-related discrepancies in self-reported health across various affluent nations, with the United States showcasing more pronounced inequalities compared to its European counterparts. Interestingly, the magnitude of these disparities remained relatively stable over time in all the countries examined.

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