CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

(Barry) #1

snapshot of social outcomes without including an income


parameter, which makes it an ideal source for income inequality


analysis. We present Wilkinson and Pickett’s compelling graphic,


which captures the overall findings of their research, by placing the


IHSP alongside the most up-to-date inequality data (Figure 21).^34


This unique dataset demonstrates a very strong relationship


between increasing levels of inequality and greater health and social


problems (ρ = 0.54).


Figure 21. Income Inequality and Health and Social Problems, 2008


Source: Authors’ calculations using Wilkinson and Pickett (2010) and Solt (2009)
Note: Lower index values represent better health and social outcomes.


While data limitations preclude us from testing the IHSP over a


wider range of countries, we are able to examine income inequality


and one particularly pressing social problem, violence (Figure 22).


Looking at homicide rates and Gini indices across a sample of 138


countries, we find that countries characterized by high levels of


inequality tend to be much more violent (ρ = 0.57)


(^34) Most of their data sources span the early 2000s, and the authors’ also use
inequality measures from UNDP that are dated (circa 2005). Figure 22, therefore,
provides a more recent picture of the relationship between the IHSP and income
inequality, especially in terms of Gini indices.

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