Dimensions of the Social Environment:
Economy

Overview

Economic aspects of local areas have been among the most frequently analyzed contextual factors to mortality and other outcomes (Hopper 1985; Krieger et al. 1993; Lynch and Kaplan 2000). Significant associations have been shown between health status and community economic characteristics including income (Anderson et al. 1997; Diez Roux et al. 1997) and inequality in income distribution (Lynch et al. 1998; Kennedy et al. 1998), wealth (Diez Roux et al. 1997; O’Campo et al. 1997), poverty (Yen and Kaplan 1999; Shaw et al. 2000), and the geographic concentration of poverty (Waitzman and Smith 1998a,b).

Data for most of these economic indicators are readily available for small areas in census data is undoubtedly an important factor accounting for their widespread use (Mitchell et al. 2000). Our consultants encouraged a broadened perspective to fully assess the economic status of communities. This involved identifying a more diversified set of indicators for commonly studied components, such as considering various types of income (earnings, investments, and transfers) in addition to the overall mean or median income in an area. A number of additional components of economic well–being were also suggested for inclusion. For example, the opportunities for community residents to obtain financial resources would be influenced by characteristics of economic development in an area, including productivity, industrial mix, and amount of area business lending, as well as by the exchanges of goods and services through the informal economy. The availability of financial services such as banks and other sources of credit were considered important, as were local costs of living, patterns of redistribution through taxes and transfers, and the fiscal capacity of the area. One aspect of the economic milieu concerns how the community segments are differentially exploited, and thereby constrained in their access to monetary resources. Indicators of exploitation include the ratio of wages to corporate profits, as well as issues related to job location; such as, length of commute and commuter taxation.

This table presents the components and indicators of the economic dimension. Nine economic components are identified:

1. Income
2. Wealth
3. Poverty
4. Economic Development
5. Financial Services
6. Cost of Living
7. Redistribution
8. Fiscal Capacity
9. Exploitation

Within each component, several indicators are identified, and for each indicator at least one data set is listed.

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Date last reviewed: 01/05/2007
Content source: Division for Heart Disease and Stroke Prevention, National Center for Chronic Disease Prevention and Health Promotion