Study Shows Wealth Does Not Ensure Equal Levels Of Health Across Race, Ethnicity

As they say, money can't buy happiness, but it can buy health, to a certain extent. New research from the University of Kansas shows that the same amount of wealth does not guarantee the same positive health outcomes for everyone.

Analysis of national data and reports on mental health and well-being show that people of color need more financial resources to achieve the same health outcomes as white Americans. Surprisingly, the study found that unsecured debt had better health outcomes for whites, but worse health outcomes for people of color. This suggests the need for policies that address wealth inequality early in life, the study authors write.

Sikong "Summer" Su, an assistant professor of social well-being at the University of California, San Francisco, analyzed data on wealth, assets, debt and other socioeconomic factors and compared the physical and mental health of more than 7,000 Americans ages 30 to 36. . old. . The data are part of the 1997 National Longitudinal Study of Adolescents, which periodically collects information from participants about various aspects of their lives. The study was published in the Journal of Racial and Ethnic Health Disparities .

Wealth is often measured as net worth by calculating total assets minus total liabilities. Although net worth provides important information about a household's socioeconomic status and economic resources, it provides little information about the most effective intervention approaches. To fill this gap, Sun measures people's wealth through their financial assets, such as savings, retirement plans, stocks and bonds. Non-monetary assets, including the value of real estate and vehicles; A debt secured such as a mortgage; Unsecured debt including student loans, credit card debt, and payday loans.

"I wanted to look at the components of wealth and evaluate how they relate to health," said Sun, a faculty member at the Tony Johnson Center for Racial and Social Justice. "I think these results can be very useful in identifying policies and programs that help ensure better safety and health for everyone. There are different types of assets and liabilities, each of which has a different impact on health.

The study found that financial assets and liabilities were positively related to self-rated health and mental health. Unsecured debt is negatively associated with mental health. Efforts to expand and increase financial access and inclusion, such as emergency savings, banking and financial services, safe and accessible credit, and affordable mortgage loans, provide health benefits in addition to economic well-being. In this way, interdisciplinary research collaborations and multidisciplinary partnerships can be effective, Sun said.

However, research shows that the relationship between wealth and health varies by race/ethnicity. The study examines the wealth and health outcomes of non-Hispanic whites, non-Hispanic blacks, and Hispanic Americans.

"I think one of the most interesting findings has to do with unsecured debt," Sun said. "At this stage of life (ages 30 to 36), I found that of all types of assets and liabilities, the prevalence and amount are highest among young whites. For example, 74 percent of young blacks "Non-Hispanics say they have unsecured debt, compared to 57 percent of non-Hispanic youth."

"Unsecured debt is protective of the health of white respondents, but is harmful to people of color, especially young people of color. This suggests that debt has different consequences, problems, and ways of affecting white society and the economy, and these aspects differ between white Americans. and white Americans. White Americans of color.”

Other aspects of socioeconomic status have been shown to be important for health. Controlling for income, education, employment, and net worth, racial differences in self-rated health were attenuated. These findings highlight the importance of addressing socioeconomic inequality at a young age, Sun said.

"No wonder equality began early among people of color," Sun said. "Thinking about policy and program interventions, such as asset building and debt relief, will not only help people find assets, but will also help them achieve better health outcomes over time and throughout life." his life".

These findings strengthen Sun's research on the effects of wealth on health early in life.

The results highlight the importance of policies such as the Universal Child Development Account and Child Bonds that start from an early age to address wealth and health inequalities. Additionally, addressing unsecured debt through policies like student loan forgiveness can have health benefits, especially for people of color, Sun says. These policies help address structural inequalities and ensure better health outcomes for all, which in turn has positive social and economic impacts.

"Money can buy health to a certain extent, but not to the same extent for everyone," Sun said. Having more money or wealth is not enough to ensure that everyone enjoys the same health. We must critically examine how systemic power structures relate to race-based social constructs. It is important to address the historical legacy of inequality in the financial system. "

Further reading: Sikong Sun, Building Financial Capacity and Assets to Reduce Poverty and Health Disparities: Racial and Ethnic Issues, Journal of Racial and Ethnic Health Disparities (2023). DOI: 10.1007/s40615-023-01648-9

Quote: Study Finds Wealth Equals Health Across Racial and Ethnic Groups (2023, December 5), December 14, 2023 from https://medicalxpress.com/news/2023-12-wealth- equal-health-ethnicity. Html

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