Uncovering the health divide: examining the influence of poverty risk and income inequality on health outcomes in over 300 Finnish municipalities

The relationship between poverty, income inequality, and health outcomes has been extensively explored in the literature, primarily focusing on cross-country comparisons. However, findings from within-country analyses have yielded inconsistent results. This study investigates the association between poverty risk, income inequality, and health outcomes using Finnish municipality-level data from 1990 to 2023. Fixed-effect models are used to reveal a concerning interplay between these factors by utilizing measures of poverty risk, income inequality, and their synergistic effect, alongside a comprehensive set of health outcome indicators. The findings reveal a significant strong association between both poverty risk and income inequality with various health indicators. Moreover, the analysis also demonstrates a strong combined influence of poverty and inequality, indicating that their combined effect on negative health outcomes is more pronounced. These findings suggest that policies promoting social mobility and reducing income inequality may lead to a healthier Finnish population, particularly low-income residents, with a lower burden of chronic diseases and mortality.