Why are health and social problems in the EU related to income inequality within countries, rather than per capita income?
With regard to Wilkinson and Pickett’s studies in “The Spirit Level” (2010), I am demonstrating the relation of health and social problems with income inequality for EU countries and compare the results with the European Social Policy Models described by Boeri (2002) and Sapir (2005).
At least since the “Occupy Wall Street” and the “We are the 99 percent” movements started to dominate newspaper headlines, the problem of unequally allocated disposable income has gained more attention by policy makers around the globe. In reconstruction times following WWII, gains in income have been shared almost equally between income quintile groups until the late 1970s - when the Great Convergence ended.
Politicians and economists have therefore increased their interest in finding other indicators for economic performance rather than only casting an eye on GDP growth. I will thus investigate why health and social problems are far more related to income inequality rather than GDP growth or per capita income. To understand the situation especially in the European Union (EU) I will subsequently explain the underlying circumstances.
Table of Contents
1. Introduction
2. Theoretical Background
3. Data and Methods
4. Empirical Results
4.a. Descriptive Analysis
4.b. Clustering of the European Union
5. Policy Implications
5.a. National policies
5.b. Supranational policies
6. Conclusion
7. References
7.a. Bibliography
Research Objectives and Themes
The thesis investigates why health and social problems within the European Union are more strongly correlated with income inequality than with per capita income or GDP growth. By applying empirical data and clustering methods, the research evaluates the relationship between economic disparities and social welfare outcomes, testing whether existing European Social Policy Models adequately address these inequalities.
- Analysis of income inequality vs. per capita income.
- Correlation between income inequality and social indicators (health, crime, education).
- Application of clustering methods (K-Means and PCA) to classify EU countries.
- Evaluation of the effectiveness of National and Supranational social policies.
Excerpt from the Book
4. Empirical Results
Wilkinson and Pickett (2010) arrayed an index of “Health and Social Problems” contending indicators such as life expectancy, education (performance in math and literacy), child well-being, infant mortality, homicides (per 100,000), imprisonment (per 100,000), teenage births (per 100,000), trust (interpersonal – World Survey Data), obesity (% of persons with a BMI>30), mental illness and social mobility. In their work “The Spirit Level” they revealed that all these indicators are related to income inequality within countries. For example countries with a higher level of child well-being (UNICEF index) tend to have lower income inequalities. After summarising those indicators to one index, a high correlation with income inequality is found, suggesting that developed countries with higher inequality are very likely to consist of an unhealthier and socially underprivileged society (Wilkinson and Pickett, 2010). These circumstances have motivated me to take a closer look at the European Union, consisting not only of developed countries but also of newly industrialised countries from the Eastern enlargements, whose economies are growing more rapidly than others in the EU.
Table 1 provides the three point summary of the raw data being used in the empirical part. Later on, the data is transformed to guarantee an unbiased summarised index of health and social problems with every single indicator being weighted equally.
Summary of Chapters
1. Introduction: Presents the research motivation, specifically the link between income distribution and social welfare, and outlines the scope of the study within the European Union.
2. Theoretical Background: Discusses existing economic theories and the limitations of GDP as a sole indicator for societal well-being, highlighting the work of Wilkinson and Pickett.
3. Data and Methods: Describes the datasets obtained from Eurostat, WHO, and others, and explains the application of the Gini coefficient, Lorenz curves, and clustering techniques.
4. Empirical Results: Analyzes the correlation between health/social indicators and income inequality, and performs a clustering of EU countries based on their social and economic performance.
5. Policy Implications: Suggests strategies for national and supranational entities to mitigate social gradients and improve welfare outcomes through targeted policy interventions.
6. Conclusion: Synthesizes the empirical findings, confirming the strong relation between income inequality and social issues, and reflects on the efficacy of current European social models.
7. References: Provides the bibliographic list and supporting materials used throughout the thesis.
Keywords
Income Inequality, European Union, Social Policy, Health Outcomes, Gini Coefficient, Social Mobility, Economic Growth, Welfare, Cluster Analysis, Public Spending, Sustainability, Socioeconomic Status, Redistribution, Unemployment, Poverty.
Frequently Asked Questions
What is the fundamental research question of this thesis?
The work seeks to determine why health and social problems in EU member states are more closely related to levels of income inequality within countries than to national per capita income or GDP growth.
What are the central thematic fields covered?
The research covers income distribution, social inequality, health outcomes, public social expenditure, and the efficacy of different European social policy models.
Which scientific methodology is employed?
The thesis uses a quantitative approach involving the calculation of the Gini coefficient, correlation analysis between social indicators and income inequality, and statistical clustering methods (K-Means and PCA).
What is discussed in the main body?
The main body examines the relationship between economic status and various social indicators, clusters EU countries based on these metrics, and evaluates the redistribution effects of national and EU-level policies.
How does the author characterize the work with keywords?
The work is primarily characterized by terms such as income inequality, social policy, health outcomes, European Union, Gini coefficient, and welfare distribution.
What is the role of the Eastern enlargement countries in this analysis?
The author includes newer EU member states from Eastern Europe to test if the correlations observed in established industrial nations hold true for rapidly growing economies.
How do the results compare to the theories of Boeri and Sapir?
The thesis finds that, while some similarities exist, the efficiency of current social policy models in reducing inequality is less clear-cut than previously suggested, especially considering recent economic crises.
What impact does income inequality have on children, according to the study?
The research suggests that countries with higher income inequality tend to exhibit poorer conditions for children, affecting areas such as child well-being, education, and health.
- Arbeit zitieren
- Anonym (Autor:in), 2013, Income Inequality in the European Union and its relation to health and social problems, München, GRIN Verlag, https://www.grin.com/document/293354
