Lowest Income Decile Research Articles

Internet use at work and income inequality in Ecuador

This study examines the impact of technological advancements, particularly Internet access, on labor income inequality. The Internet is a versatile technology with wide-ranging applications. We argue that in environments characterized by limited innovation and a polarized job market, Internet access can positively influence worker income, especially for those in lower income brackets. Our research conducted in Ecuador from 2010 to 2017 employs instrumental variable quantile regression to analyze how Internet access affects wages across various income levels. Our findings indicate that using the Internet at work correlates with higher wages in Ecuador, particularly benefiting workers in the higher quantiles of the income distribution. While the income gap between employees with and without Internet access is largest in the lowest quantile, it decreases in the second quantile and widens again in the third, but never surpasses the gap observed in the first quantile. Public policy should thus provide citizens, particularly in the lowest income deciles, with education on effective Internet usage to improve their conditions and reduce inequality. By concentrating on these groups, we can better distribute the advantages of Internet access, ultimately creating a more balanced and equitable society.

Income Level and Impaired Kidney Function Among Working Adults in Japan

Chronic kidney disease (CKD) is a major public health issue, affecting 850 million people worldwide. Although previous studies have shown the association between socioeconomic status and CKD, little is known about whether this association exists in countries such as Japan where universal health coverage has been mostly achieved. To identify any association of income-based disparity with development of impaired kidney function among the working population of Japan. This was a nationwide retrospective cohort study of adults aged 34 to 74 years who were enrolled in the Japan Health Insurance Association insurance program, which covers approximately 40% of the working-age population (30 million enrollees) in Japan. Participants whose estimated glomerular filtration rate (eGFR) had been measured at least twice from 2015 to 2022 were included in the analysis, which was conducted from September 1, 2021, to March 31, 2023. Individual income levels (deciles) in the fiscal year 2015. Odds ratios were calculated for rapid CKD progression (defined as an annual eGFR decline of more than 5 mL/min/1.73 m2), and hazard ratios, for the initiation of kidney replacement therapy (dialysis or kidney transplant) by income level deciles in the fiscal year 2015. The study population totaled 5 591 060 individuals (mean [SD] age, 49.2 [9.3] years) of whom 33.4% were female. After adjusting for potential confounders, the lowest income decile (lowest 10th percentile) demonstrated a greater risk of rapid CKD progression (adjusted odds ratio, 1.70; 95% CI, 1.67-1.73) and a greater risk of kidney replacement therapy initiation (adjusted hazard ratio, 1.65; 95% CI, 1.47-1.86) compared with the highest income decile (top 10th percentile). A negative monotonic association was more pronounced among males and individuals without diabetes and was observed in individuals with early (CKD stage 1-2) and advanced (CKD stage 3-5) disease. The findings of this retrospective cohort study suggest that, even in countries with universal health coverage, there may be a large income-based disparity in the risk of rapid CKD progression and initiation of kidney replacement therapy. These findings highlight the importance of adapting CKD prevention and management strategies according to an individual's socioeconomic status, even when basic health care services are financially guaranteed.

Equity implications of net-zero emissions: A multi-model analysis of energy expenditures across income classes under economy-wide deep decarbonization policies

With companies, states, and countries targeting net-zero emissions around midcentury, there are questions about how these targets alter household welfare and finances, including distributional effects across income groups. This paper examines the distributional dimensions of technology transitions and net-zero policies with a focus on welfare impacts across household incomes. The analysis uses a model intercomparison with a range of energy-economy models using harmonized policy scenarios reaching economy-wide, net-zero CO2 emissions across the United States in 2050. We employ a novel linking approach that connects output from detailed energy system models with survey microdata on energy expenditures across income classes to provide distributional analysis of net-zero policies. Although there are differences in model structure and input assumptions, we find broad agreement in qualitative trends in policy incidence and energy burdens across income groups. Models generally agree that direct energy expenditures for many households will likely decline over time with reference and net-zero policies. However, there is variation in the extent of changes relative to current levels, energy burdens relative to reference levels, and electricity expenditures. Policy design, primarily how climate policy revenues are used, has first-order impacts on distributional outcomes. Net-zero policy costs, in both absolute and relative terms, are unevenly distributed across households, and relative increases in energy expenditures are higher for lowest-income households. However, we also find that recycled revenues from climate policies have countervailing effects when rebated on a per-capita basis, offsetting higher energy burdens and potentially even leading to net progressive outcomes. Model results also show carbon Laffer curves, where revenues from net-zero policies increase but then decline with higher stringencies, which can diminish the progressive effects of climate policies. We also illustrate how using annual income deciles for distributional analysis instead of expenditure deciles can overstate the progressivity of emissions policies by overweighting revenue impacts on the lowest-income deciles.

The impact of government subsidy programs on equity in health financing

BackgroundIran government implemented the targeted subsidy plan in December 2010 to reduce energy consumption and inequality. In addition, the Health Transformation Plan was implemented by the Ministry of Health to reduce out-of-pocket payments. This study aimed to examine the impact of these two government subsidy programs on equity in health financing.MethodIn this study, data on 528,046 households were collected using household surveys during 14 years (2007–2020). The Fairness in Financial Contribution index and Catastrophic Health Expenditures index were calculated. Also, a Logistic regression model was performed by the applied software of Stata V.14 to examine the effects of the two mentioned policies and other socioeconomic characteristics of households on their exposure to Catastrophic Health Expenditures.ResultsThe FFC index was 0.829 and 0.795 respectively in 2007 and 2020. The trend analysis did not show significant changes in the FFC index between 2007 and 2020. TSP and HTP implementations do not reduce households’ exposure to CHE significantly. Crowded households with more elder people, belonging to low-income deciles, without houses, and living in rural areas and deprived provinces, are more likely to be at risk of CHE. Health insurance coverage did not protect households from CHE. Highly educated and employed households were exposed to less CHE.ConclusionThe government subsidy programs have not been effective in improving FFC and reducing CHE indices. None of them has been able to realize the goal of the 6th National Development Plan of reducing CHE to 1%. The government should devise support packages for target households (households with more elderly people, lower incomes, without private houses, crowded, rural, and inhabited in deprived provinces), so they can protect households against CHE. Modifying and improving the quality of insurance coverage is strongly recommended due to its inefficiency.

Energy inflation and consumption inequality

This paper examines the effects of higher energy prices on consumption inequality for a large panel of 129 advanced and developing economies during the period 1970–2013. The results suggest that energy inflation increases the Gini measure of consumption inequality and reduces (increases) the share of consumption of lower (higher) income deciles. These effects are larger in developing economies, in countries with limited access to finance, in those with weaker monetary policy frameworks, during periods of economic slack and in cases where government transfers do not compensate the poorer deciles during times of adverse income shocks.

Health System's Role in Facilitating Health Service Access among Persons with Spinal Cord Injury across 22 Countries.

(1) Background: Despite efforts to improve access to health services, between- and within-country access inequalities remain, especially for individuals with complex disabling conditions like spinal cord injury (SCI). Persons with SCI require regular multidisciplinary follow-up care yet experience more access barriers than the general population. This study examines health system characteristics associated with access among persons with SCI across 22 countries. (2) Methods: Study data are from the International Spinal Cord Injury Survey with 12,588 participants with SCI across 22 countries. Cluster analysis was used to identify service access clusters based on reported access restrictions. The association between service access and health system characteristics (health workforce, infrastructure density, health expenditure) was determined by means of classification and regression trees. (3) Results: Unmet needs were reported by 17% of participants: lowest (10%) in Japan, Spain, and Switzerland (cluster 1) and highest (62%) in Morocco (cluster 8). The country of residence was the most important factor in facilitating access. Those reporting access restrictions were more likely to live in Morocco, to be in the lowest income decile, with multiple comorbidities (Secondary Conditions Scale (SCI-SCS) score > 29) and low functioning status (Spinal Cord Independence Measure score < 53). Those less likely to report access restriction tended to reside in all other countries except Brazil, China, Malaysia, Morocco, Poland, South Africa, and South Korea and have fewer comorbidities (SCI-SCS < 23). (4) Conclusions: The country of residence was the most important factor in facilitating health service access. Following the country of residence, higher income and better health were the most important facilitators of service access. Health service availability and affordability were reported as the most frequent health access barriers.

Does Oral Health-Related Quality of Life Differ by Income Group? Findings from a Nationally Representative Survey.

Objectives: Clarify the association between income group and oral health-related quality of life. Methods: Data were used from a nationally representative online survey with n = 3075 individuals. It was conducted in late Summer 2021. The established Oral Health Impact Profile (OHIP-G5) was used to measure oral health-related quality of life. The income group (household net income) was used as key independent variable. It was adjusted for several covariates. Full-information maximum likelihood was used to address missing values. Results: Individuals in the lowest income decile had a lower oral health-related quality of life (Cohen’s d = −0.34) compared to individuals in the second to ninth income deciles. Individuals in the highest income decile had a higher oral health-related quality of life (Cohen’s d = 0.20) compared to individuals in the second to ninth income deciles. Consequently, there was a medium difference (Cohen’s d = 0.53) between individuals in the lowest income decile and individuals in the highest income decile. Additionally, multiple linear regressions showed significant differences between individuals in the lowest income decile and individuals in the second to ninth income deciles (β = 0.72, p < 0.01). In contrast, only marginal significant differences were identified between individuals in the second to ninth income deciles and individuals in the highest income decile (β = −0.28, p < 0.10). Conclusions: The current study particularly stressed the association between low income and low oral health-related quality of life in the general adult population. Increasing oral health-related quality of life in individuals with low income is a major issue which should be targeted.

FinTech Loans, Self-Employment, and Financial Performance

Leveraging data from a leading FinTech peer-to-peer lending platform in the United States, this study investigates the effect of an unsuccessful FinTech loan application on subsequent self-employment decisions. Our analysis shows that a failed loan application increases the probability of a transition out of self-employment by 22%, this effect is stronger for individuals in the lowest income decile. Additionally, securing a FinTech loan enhances self-employed individuals’ future financial performance. This enhancement is asymmetric, income enhancement is 3.11 larger for individuals in the lowest income decile, and credit-access enhancement is 1.85 times larger for individuals in the lowest credit-access decile.

Untere Einkommensgruppen noch gezielter entlasten

AbstractPrices for energy and food are currently rising extraordinarily sharply. Households with low net incomes in particular are being burdened by the price increases, in some cases dramatically. According to current inflation forecasts, price increases for the lowest-income ten percent would mean a burden of 5.3 percent of their net household income in 2022. Since the low-income deciles cannot compensate for the additional expenditure by reducing their savings rate or possible reserves, nor can they restrict their consumption behavior to a corresponding extent since they primarily consume goods and services for basic needs, it is essential to provide relief for these households. The measures already adopted by the German government are easing the burden on citizens, but they are not enough to compensate for the additional burden on lower-income households. Further aid packages should provide targeted and efficient relief for households at the lower half of the income distribution.

Freedom of choice? Social and spatial disparities on combined housing and transport affordability

Housing and transport affordability (H + TA) analysis has been receiving increasing attention among academics and practitioners worldwide, particularly in Global North settings. These studies usually overlook spatial and socioeconomic distributional considerations that potentially underestimate the simultaneous impact of transport and housing costs on lower-income family budgets. Our work seeks to address these knowledge gaps by understanding and measuring H + TA, considering different types of households in Santiago, Chile. Combining income, housing, transport, and census data, we estimate H + TA costs using spatial clusters and probability distribution functions, analyzing the “degree of choice” that socially disadvantaged groups have given their financial constraints. The results show that families with children, the elderly, and immigrants are among the most limited in their choices. Most central and eastern sectors of the city which provide the highest density of work opportunities are out of reach for the three lowest-income deciles given the high combined costs of H + TA, being dependents on government benefits and/or social housing. Middle class, from the 4th to 6th income deciles, can choose from between 30% and 65% of all housing and transport combinations, but from less than 6% of those offered on the two clusters with the best transport and urban conditions. These findings bring into question current inter-sectoral policies to alleviate the “cost pressure” of Santiago's lower- and middle-income households.

Wage theft and life expectancy inequities in the United States: A simulation study

Wage theft – employers not paying workers their legally entitled wages and benefits – costs workers billions of dollars annually. We tested whether preventing wage theft could increase U.S. life expectancy and decrease inequities therein. We obtained nationally representative estimates of the 2001–2014 association between income and expected age at death for 40-year-olds (40 plus life expectancy at age 40) compiled from tax and Social Security Administration records, and estimates of the burden of wage theft from several sources, including estimates regarding minimum-wage violations (not paying workers the minimum wage) developed from Current Population Survey data. After modeling the relationship between income and expected age at death, we simulated the effects of scenarios preventing wage theft on mean expected age at death, assuming a causal effect of income on expected age at death. We simulated several scenarios, including one using data suggesting minimum-wage violations constituted 38% of all wage theft and caused 58% of affected workers' losses. Among women in the lowest income decile, mean expected age at death was 0.17 years longer in the counterfactual scenario than observed (95% confidence interval [CI]: 0.11–0.22), corresponding to 528,685 (95% CI: 346,018-711,353) years extended in the total 2001–2014 age-40 population. Among men in the lowest decile, the estimates were 0.12 (95% CI: 0.07–0.17) and 380,502 (95% CI: 229,630-531,374). Moreover, among women, mean expected age at death in the counterfactual scenario increased 0.16 (95% CI: 0.06–0.27) years more among the lowest decile than among the highest decile; among men, the estimate was 0.12 (95% CI: 0.03–0.21).

Relationship Between Income Level and Hospitalization Rate in COVID-19 Cases; an Example of Social Factors Affecting Health

Introduction:Considering the population's socioeconomic status and clinical features is essential in planning and performing interventions related to disease control. The main purpose of this study was to investigate the relationship between income level and hospitalization rate of COVID-19 patients‌.Methods:A cross-sectional study was performed on 198,944 hospitalized COVID-19 patients in Tehran province between March 2020 and March 2021. Data of hospitalized COVID-19 patients was obtained from the Hospital Intelligent Management System (HIM). The income data of patients were obtained from the Iranian Database on Targeted Subsidies belonging to the Ministry of Cooperatives, Labor, and Social Welfare. Data analyses were performed using SPSS software.Results:About 2.5% of the inpatients were from the first decile, while 20.6% were from the tenth. The share of the lower three deciles of total hospitalization was about 11%, while the share of the upper three deciles was 50%. There was a big difference between the upper- and lower-income deciles regarding death rates. In the first decile, 30% of inpatients died, while the proportion was 10% in the tenth decile. There was a significant and positive relationship between income decline and hospitalization (r = 0.75; p = 0.02). Also, there was a significant and negative relationship between income decline and death rate (r = -0.90; p = 0.01).Conclusion:Low-income groups use fewer inpatient services, are more prone to severe illness and death from COVID-19‌, and treatment in this group has a lower chance of success. Using a systemic approach to address socioeconomic factors in healthcare planning is crucial.

Willingness to pay for SARS-CoV-2 rapid antigen tests during the COVID-19 pandemic: evidence from the general adult population

ObjectiveOur aim was to examine the willingness to pay (WTP) for SARS-CoV-2 rapid antigen tests and its correlates during the COVID-19 pandemic in Germany. Study design/MethodsA representative online survey was conducted in late summer 2021 (with n = 3075; the average age was 44.5 years; 14.8 years ranging from 18 to 70 years) in Germany. Two-part models were conducted. Various correlates (such as empathy or altruism) were included in the regression analysis. ResultsThe average WTP for SARS-CoV-2 rapid antigen tests (in euros) was 6.6 (standard deviation 8.4) in the general adult population. It markedly differed between subgroups (e.g. the average WTP was 2.9 among individuals not vaccinated against COVID-19 and 7.5 among individuals vaccinated against COVID-19; it was 5.4 among the lowest income decile, whereas it was 8.6 among the highest income decile). Regressions showed that a higher WTP for SARS-CoV-2 rapid antigen tests was associated with being male, being in the highest income group, being vaccinated against COVID-19, and having higher levels of empathy. ConclusionsAs the very first study in this area, our study described WTP for SARS-CoV-2 rapid antigen tests and some interesting differences between population subgroups. In particular, individuals not vaccinated against COVID-19 reported a low WTP for SARS-CoV-2 rapid antigen tests. Approximately one-fourth of the sample reported a WTP for SARS-CoV-2 rapid antigen tests of €0 among individuals vaccinated against COVID-19, whereas approximately two-thirds of those not vaccinated against COVID-19 reported such a WTP. Knowledge about the WTP for COVID-19 rapid antigen tests is important for policy makers (e.g. for testing strategies) during this pandemic. It may also give a rough estimation of the acceptance of such rapid tests.

Estimating the Income Elasticities of Health Expenditures for Income Quintiles and Inequality of Health Expenditures Distribution

Background: Determining the income elasticities of the household health expenditures, especially for income deciles, leads to adoption of appropriate policies to control and manage health expenditures among income deciles. Therefore, the main purpose of this study was to estimate the income elasticities of urban household health expenditures by income quintiles, and also calculate inequality in distribution of urban household health expenditures in Iran.&#x0D; Methods: This was a descriptive-analytical and applied study performed cross-sectionally with the Hackman two-stage method in Stata 16 software in 2021. The sample included 16,943 urban households in Statistics Center of Iran, and the data was extracted from the raw data of different sections of the cost and income questionnaire regarding urban households. Health expenditure inequality was measured by Gini coefficient, Robin Hood and Herfindal-Hershman indices.&#x0D; Results: The results showed that the income elasticity of health expenditures was 0.31 for the entire sample and 0.28, 0.66 and 0.36 for the first, second and fifth quintiles, respectively. The Gini, Robin Hood and Herfindal Hirschman indices were 0.240, 0.272 and 0.231, respectively. The increase in parents' educational level and household income, and having a child under seven and a private home had a positive effect and maternal employment had a negative effect on the increase of household health expenditures.&#x0D; Conclusion: Health is an important asset for urban households and the income quintiles; therefore, the adoption of redistributive policies is recommended to support households, especially the ones in the 2 lowest quintiles. The results of inequality indicators demonstrate the existence of inequality in the distribution of health expenditures; so, it is recommended to upgrade health insurance programs for low-income deciles, expand the coverage of essential medical services and receive premiums based on their ability to pay.&#x0D;

Economic freedom improves income mobility: evidence from Canadian provinces, 1982–2018

AbstractEconomic freedom is robustly associated with income growth, but does this association extend to the poorest in a society? In this paper, we employ Canada's longitudinal cohorts of income mobility between 1982 and 2018 to answer this question. We find that economic freedom, as measured by the Fraser Institute's Economic Freedom of North America (EFNA) index, is positively associated with multiple measures of income mobility for people in the lowest income deciles, including (a) absolute income gain; (b) the percentage of people with rising income; and (c) average decile mobility. For the overall population, economic freedom has weaker effects.

The income gradient in COVID-19 mortality and hospitalisation: An observational study with social security administrative records in Mexico

BackgroundThe COVID-19 pandemic revealed large structural inequalities that led to disparities in health outcomes related to socioeconomic status. So far, most of the evidence is based on aggregated data or simulations with individual data, which point to various possible mechanisms behind the association. To date, there have been no studies regarding an income gradient in COVID-19 mortality based on individual-level data and adjusting for comorbidities or access to healthcare.MethodsIn this paper, we use linked employee-patient data for patients tested for COVID-19 at the Mexican Institute of Social Security. We estimate the association of the probability of dying with income centiles, using a probit estimation and adjusting for COVID-19 diagnosis, sociodemographic variables, and comorbidities.FindingsAfter controlling for all these variables, we find that persons in the lowest income decile still had a probability of dying from COVID-19 five times greater than those at the top decile.InterpretationOur results imply that the association between income and COVID outcomes is not explained by the prevalence of comorbidities or by a lack of access to healthcare among the low-income population.FundingThis study was not supported by any external funding source.

Is the Minimum Wage Effective in a Context of Informality?

There is a general trend in the South American region to increase the minimum wage (MW) to reduce poverty and inequality. However, empirical studies are inconclusive with respect to the effect of the MW. This study seeks to contribute to the empirical evidence regarding the impact of this policy by exploring its limitations and possibilities for reducing poverty in Ecuador. Unlike other studies, a measure to capture informality in the labor market is included. Using fixed effect estimation with panel data, I determine the relationship between labor income deciles and variations in the MW, using a proxy for its effectiveness. The results suggest that the MW positively affects the lower income deciles, to a lesser extent the intermediate deciles and with no effect on the higher ones. However, when considering a control for the degree of informality in the labor market, the effect on the lower deciles is mitigated. Therefore, increases in the MW may be a strategy to increase the income of the middle and vulnerable class, but it does not seem to be useful for reducing poverty.

Economic Freedom Improves Income Mobility: Evidence from Canadian Provinces, 1982–2018

Economic freedom is robustly associated with income growth, but does this association extend to the poorest in a society? In this paper, we employ Canada’s longitudinal cohorts of income mobility between 1982 and 2018 to answer this question. We find that economic freedom, as measured by the Fraser Institute’s Economic Freedom of North America (EFNA) index, is positively associated with multiple measures of income mobility for people in the lowest income deciles, including a) absolute income gain; b) the percentage of people with rising income; and c) average decile mobility. For the overall population, economic freedom has weaker effects.

Height is associated with more self-serving beliefs about wealth redistribution

Abstract People vary widely in their attitudes towards how much their government should redistribute wealth. Evolutionary theory may shed light on why this variation occurs. Numerous studies have established an association between upper body strength and attitudes towards equality and wealth redistribution in males, showing that physically stronger men are more likely to hold self-serving beliefs on these issues. This effect is typically weaker or absent in women. A question that has received little attention is whether there are similar associations between other aspects of formidability and attitudes towards wealth redistribution. One such aspect is height. I tested this prediction using data from the European Social Survey, in a sample of 27031 people from 20 European countries. Results show that taller people are more likely to have self-serving attitudes towards government redistribution of wealth. The result was robust to numerous control variables and alternative model specifications, but the direct effects of height were small. Taller individuals were less supportive of government wealth redistribution overall, but were especially averse if they were also wealthier. Post-hoc analyses suggested that for lower income deciles, the association was reversed. For these people, there was a positive association between height and support for wealth redistribution. However, effects were equally strong in males and females, and so are not fully consistent with current evolutionary psychological theories of resource distribution.

Distributional effects of reducing energy subsidies: Evidence from recent policy reform in Argentina

We analyze the distributional effects of the reduction in energy subsidies in Argentina since 2016. As the policy reform also includes the introduction of a scheme to protect less well-off families (social tariff), we also review how well the targeting mechanism works. We apply traditional benefit-incidence analysis using household surveys and administrative data, focusing on residential subsidies to piped natural gas and electricity in the Buenos Aires Metropolitan Area. We find that the social tariff is relatively pro-poor, with significantly higher coverage among the poorest households. There are some exclusion errors in the low-income deciles and large inclusion errors in the medium- and high-income deciles. The distributive incidence of subsidies does not appear to have changed substantially. Energy subsidies in Argentina (albeit lower in aggregate terms) continue to be, although progressive, pro-rich. This is in large part due to the prevalence of the general flat subsidy rate mechanism over the social tariff mechanism. Regarding energy budget shares, monthly spending on electricity has increased from 1.1% of total household income to 3.4%. Monthly spending on piped natural gas rose from 1.3% to 3.3%. These shares are in line with many other countries in the region. Naturally, there has been a convergence of tariffs towards service provision costs, which becomes central in order to incentive sectoral investment and stimulate a good provision of services. • Energy subsidies in Argentina increased tenfold as a share of GDP between 2005 and 2014 • We study the distributional impact of the energy subsidy reduction • A flat subsidy rate concurs with a targeted social tariff to protect the vulnerable • Post-reform subsidies remain pro-rich due to the prevalence of the flat subsidy rate • In addition, the social tariff has large exclusion and inclusion errors