Health inequality in welfare states: the role of asset ‘safety net’ – a cross-national comparative study

• In Event: 30620 - Section on Inequality, Poverty, and Mobility Roundtables
  In Refereed Roundtable (60 minute): Table 7: The Demography of Inequality

Abstract

This study examines health inequality by social class in underdeveloped welfare states, focusing on assets as an economic buffer or "safety net." Political economy literature often positions assets as alternatives to state welfare; however, if assets indeed provide economic stability where state support is limited, could they effectively mitigate health risks associated with low income? Existing studies on health inequality have primarily focused on income and employment status while overlooking the role of wealth, particularly household assets, in shaping health outcomes. This study builds on welfare state and social determinants of health literature to conceptualize assets as a “private safety net” that compensates for weak public welfare systems. Using data from the U.S. Health and Retirement Study (HRS) and the Survey of Health, Ageing and Retirement in Europe (SHARE), this study examines this gap, testing (1) whether assets alleviate the negative impact of low income on physical and mental health internationally and (2) whether this alleviation is inversely proportional to the level of national welfare. By examining cross-national differences, this study explores whether the protective effects of wealth are more pronounced in low-welfare states, where social protection is minimal. 2-level ordered logistic regression models with interaction terms are employed to analyze how the relationship between assets and health varies across welfare regimes. Findings from this study will have implications for policies addressing health disparities through social welfare expansion and asset-based interventions.

Author

• Hyunji Lim, The Ohio State University