Beyond Net Worth: Racial Differences in Wealth Portfolios and Black–White Health Inequality across the Life Course
Abstract
A large body of research links wealth and health, but most previous work focuses on net worth. However, the assets and debts that comprise wealth likely relate to health in different and meaningful ways. Furthermore, racial differences in wealth portfolios may contribute to racial health gaps. Using longitudinal data from the Panel Study of Income Dynamics (PSID) and mixed effects growth curve models, we examined the associations between various wealth components and multiple health outcomes. We also investigated whether black–white differences in wealth portfolios contributed to racial health inequality. We found that savings, stock ownership, and homeownership consistently improve health, but debt is associated with worse health, even after adjusting for total net worth. We found little evidence that home equity is associated with health. Findings also revealed differential health returns to assets by race. These findings provide new insights into the complex relationship among race, wealth, and health.
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Biographies
Courtney E. Boen is an assistant professor in the Department of Sociology and research associate in the Population Studies Center and Population Aging Research Center at the University of Pennsylvania. Dr. Boen’s research focuses on the social determinants of population health inequality, with a particular focus on the role of racism in shaping health disparities across the life course.
Lisa A. Keister is a professor in the Department of Sociology and the Sanford School of Public Policy and a research associate in the Duke Network Analysis Center and Duke University Population Research Institute. Her research explores wealth ownership and inequality, including identifying the factors that affect household decisions about saving.
Brian Aronson is a postdoctoral fellow in the Department of Sociology at Indiana University, Bloomington. Dr. Aronson’s research focuses on social network analysis, institutions, public health, and inequality.
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Article first published online: May 23, 2020
Issue published: June 2020
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PubMed: 32447993
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