Economic benefits of investments for improved health equity

Economic simulation studies point to the potentially huge economic benefits of reducing inequities and there is good evidence about how to address the causes of ill health that disproportionately affect the poor, in particular smoking-related diseases, and how to improve the conditions in which poorer people live ( LSE 2009).

Mackenbach et al. (2007) note that if the countries in EU 25 (2004) succeeded in reducing all health inequities by 10%, the economic benefits would amount to:

• €14 billion through gains in health as a ‘capital good’ (increased labour productivity);
• €70 billion through gains in health as a ‘consumption good’ (increased sense of wellness and satisfaction);
• €18 billion through reduced health care costs; and
• €6 billion through reduced social security costs.

Additional economic simulations projecting a 33% reduction in smoking in lower socioeconomic groups would yield significant gains in healthy life-years, increase productivity, reduce social security and health care costs and generate important economic benefits for society (Mackenbach et al. 2007).