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"Income inequality in OECD countries is at its highest level for the past half century. The average income of the richest 10% of the population is about nine times that of the poorest 10% across the OECD, up from seven times 25 years ago."
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In the United States inequality has increased further from already high levels.
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The literature shows general agreement about a correlation between income inequality and health/social problems.
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There is less agreement about whether income inequality causes health and social problems independently of other factors, but some rigorous studies have found evidence of this.
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Some research suggests that inequality is particularly harmful beyond a certain threshold. Britain was below this threshold in the 1960s, 1970s and early 1980s, but rose past it in 1986–7 and has settled well above it since 1998–9. If the threshold is significant it could provide a target for policy.
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Anxiety about status might explain income inequality’s effect on health and social problems. If so, inequality is harmful because it places people in a hierarchy which increases competition for status, causing stress and leading to poor health and other negative outcomes.
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Not all research shows an independent effect of income inequality on health/social problems. Some highlights the role of individual income (poverty/material circumstances), culture/history, ethnicity and welfare state institutions/social policies.
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The author concludes that there is a strong case for further research on income inequality and discussion of the policy implications.
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