Economic growth and obesity: findings of an Obesity Kuznets curve

Abstract

Simon Kuznets’ (1955) hypothesis that as a country develops, a natural cycle develops where inequality first increases, then decreases, has become known as the Kuznets curve. This pattern has also been applied to the environment, an ‘Environmental Kuznets curve’, showing that as development occurs, pollution first increases; then decreases because people value clean air. We expand the Kuznets curve to an ‘Obesity Kuznets curve’; as incomes rise, resources become available to buy more food. As such, people consume more calories and obesity rates increase. However, as incomes continue to rise, personal health becomes a more valued asset and people decrease their obesity levels (increasing their health levels). We find evidence of an Obesity Kuznets curve for white females. In addition, we find that as income inequality increases, obesity rates fall.

Keywords:

• obesity
• Kuznets curve
• body mass index
• health outcomes

JEL Classification:

• I1
• D1

Acknowledgements

A special thanks to Angela Dills, Pete Groothuis and Rey Hernández-Julián for helpful comments. Any mistakes are our own.

Notes

¹ We have an unbalanced panel of data, but our data are representative for the country as a whole. BMI is weight (kg) divided by height (m²).

² Age groups: 18–24, 25–34; 35–49; 50–64. Race groups: white and black.

³ We control for income inequality, using the Gini coefficient, following a line a literature that debates the impact of inequality on health outcomes: see Preston (1975), Judge et al. (1998) and Deaton (2003). Education groups: percentage with less than High School, High School, some college and college or more. Marital status: percentage married.

⁴ It is possible that obesity impacts wages and wages impact obesity. We have measured both leads and lags on income with similar results. Controls are not reported for brevity. Please contact the authors for these results.