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Annual Review of Clinical Psychology

Volume 21, 2025

Economic Inequality and Mental Health: Causality, Mechanisms, and Interventions

Abstract

Almost all countries in the world have witnessed a rapid increase in levels of economic inequality, a measure of the distribution of income and wealth across the population, since the advent of neoliberal economic policies in the 1970s. In this review, we conceptualize inequality as an ecological construct and discuss why it matters for the mental health of populations and for individual clinical outcomes. We then discuss some of the key mechanisms through which economic inequality influences mental health beyond poverty itself: social comparison and social capital. We also consider how the effect might vary across specific vulnerable groups in the population, such as young people and minoritized communities. Finally, we discuss methodological challenges in studying the relationship between inequality and mental health and conclude by outlining future research directions and possible interventions at the governmental, community, and individual levels to mitigate the negative mental health consequences of economic inequality.

Keyword(s): economic inequality, heterogeneity, mechanisms, mental health
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/content/journals/10.1146/annurev-clinpsy-081423-025710
2025-05-07
2025-05-18
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Economic Inequality and Mental Health: Causality, Mechanisms, and Interventions
Annual Review of Clinical Psychology 21, 353 (2025); https://doi.org/10.1146/annurev-clinpsy-081423-025710
/content/journals/10.1146/annurev-clinpsy-081423-025710
/content/journals/10.1146/annurev-clinpsy-081423-025710
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