Under the veil of neoliberalism: inequality, health, and capabilities

The relationship between income inequality and health has received substantial attention in the fields of medical sociology and public health and continues to be debated. In Chile, previous findings indicate that there is an income inequality effect; respondents who live in areas with high inequality experience a greater probability of poor self-reported health. This study examines the Wilkinson income inequality hypothesis in a new way by using it in conjunction with Sen’s capability approach. Building from critiques of the Wilkinson hypothesis, this study also incorporates analysis of the political economy of Chile. Utilizing the 2003 and 2006 cycles of the National Socio-Economic Characterization Survey (CASEN), my findings indicate a complex relationship between income inequality and health. My analyses also suggest that there are severe inequities in health outcomes; inequities that reflect Chile’s two-tier system of healthcare.