Local Economic Inequality and Depression: Evidence From Longitudinal Data on Local Residential Contexts and...

Area of Science:

• Social Epidemiology
• Public Health
• Economics

Background:

• Economic inequality is a growing concern globally.
• Its impact on mental health, specifically depression, requires nuanced investigation.
• Previous studies have yielded mixed results on the association between inequality and depression.

Purpose of the Study:

• To investigate the consequences of economic inequality on adult depression.
• To examine how these effects differ across the local income distribution.
• To leverage unique Danish administrative data for robust analysis.

Main Methods:

• Utilized individual-level longitudinal administrative data from Denmark (n = 60,654,690 person time points).
• Measured depression via antidepressant prescription redemption, avoiding nonresponse bias.
• Assessed local income inequality and conducted within-individual analyses to control for confounding factors.

Main Results:

• A modest average negative effect of economic inequality on depression was observed (1-SD increase in inequality associated with 1%-2% relative decrease in depression probability).
• This average effect masks significant heterogeneity.
• The negative association was concentrated among the locally well-off; the lowest income groups experienced increased depression with rising inequality.

Conclusions:

• The relationship between economic inequality and depression is complex and context-dependent.
• Policies addressing economic inequality may have differential impacts on mental health across socioeconomic strata.
• Targeted interventions may be necessary for vulnerable populations experiencing high economic inequality.