The Relative Importance of Social and Health Spending in Determining Health Outcomes Across Selected OECD Countries From 1990 to 2019

Abstract

Governments in high income countries continue to prioritize health care spending to improve population health, yet evidence suggests that broader social factors also influence health. This study examined whether greater investment in social spending relative to health spending is associated with improved population health across 26 OECD countries from 1990 to 2019. Using standardized international data and two-way fixed effects regression models, we assessed the association between the ratio of social-to-health spending and five health outcomes: life expectancy, potential years of life lost, infant mortality, low birth weight, and maternal mortality. Higher social-to-health spending ratios were associated with better life expectancy, potential years of life lost, and infant mortality. Outcomes for low birth weight and maternal mortality showed inverse associations with the ratio over time. These findings suggest that redirecting government spending toward social programs may be a more effective way to improve health outcomes than prioritization of health spending.