COVID-19 and income inequality in OECD countries

Abstract

Objective: To determine the association between income inequality and COVID-19 cases and deaths per million in OECD countries.

Methods: Cross-sectional regression methods are used to model the relationship between income inequality, as measured by the Gini coefficient, and COVID-19 reported cases and deaths per-million.

Results: The results demonstrate a significant positive association between income inequality and COVID-19 cases and death per million in all estimated models. A 1% increase in the Gini coefficient is associated with an approximately 4% increase in cases per-million and an approximately 5% increase in deaths per-million.

Conclusions: The results demonstrate that countries with high levels of income inequality have performed significantly worse when dealing with the COVID-19 outbreak in terms cases and deaths. Income inequality is a proxy for many elements of socioeconomic disadvantage that may contribute to the spread of, and deaths from, COVID-19. These include poor housing, smoking, obesity and pollution.

Policy implications: The findings suggest the importance of closing the gap in income inequality and improving the health and incomes of the poorest and most vulnerable groups.

Keywords: COVID-19; Income inequality; OECD; Regression.

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Density plots