Understanding Racial Disparities in Health: The Income-Wealth Paradox

We examine the ways in which racial differences in health vary over the income-wealth distribution, comparing the self-reported health status of non-Hispanic whites with those of individuals of other races and ethnicities. Paradoxically, we find that although the largest unadjusted racial differences in health are between poor whites and poor nonwhites, after adjusting for income, wealth, and other demographic characteristics, health differences between nonwhites and whites are only significant among those in the upper half of the income-wealth distribution. The results suggest that unexplained racial differences in reported health status increase with socioeconomic status among individuals aged 25–54.